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This is a known issue apparently.
There is a warning about it in the documentation here.
At this time, function names that contain a hyphen (-) can't be disabled when running on Linux plan. If you need to disable your functions when running on Linux plan, don't use hyphens in your function names.
There should be a warning or restriction on this when creating a function in visual code.
There should be a more useful error message in portal than:
Failed to disable alg-bands AppSetting with name 'AzureWebJobs.alg-bands.Disabled' is not allowed.
edit: see here for why it is important and relevant to me