azure-functions-core-tools Unable to run "func durable..." commands when using hubName set in local.settings.json

Description

When hubName in host.json is set to a string like %TaskHubName% commands run locally that start with "func durable" always return the following message:

Invalid container name. Check MSDN for more information about valid container naming.

Expected behavior

The command to run normally, having retrieved the hubName value from the app settings.

Actual behavior

The command does not run, and instead returns the error message Invalid container name. Check MSDN for more information about valid container naming.

Relevant source code snippets

host.json:

{
  "version": "2.0",
  "logging": {
    "fileLoggingMode": "always",
    "logLevel": {
      "default": "Information"
    }
  },
  "extensions": {
    "durableTask": {
      "hubName": "%TaskHubName%"
    }
  }
}

Known workarounds

Using a "normal" value for hubName

{
  "version": "2.0",
  "logging": {
    "fileLoggingMode": "always",
    "logLevel": {
      "default": "Information"
    }
  },
  "extensions": {
    "durableTask": {
      "hubName": "mylocalhubname"
    }
  }
}