Hey friends,
I just wanted to update everyone on what's going on with this, in case anyone runs into a similar issue deploying to Azure Web Apps. After more than a week, the Azure support team has finally narrowed down what is going on here. It turns out there was nothing wrong with my code at all.
Azure has an optional feature called App Service Authentication/Authorization that allows you to configure and manage a user authentication system within the Azure dashboard rather than inside your app. It works by spinning up a middleware container that all user requests are routed through.
I have never used this feature, but somehow my account's "web app template" (that's what they called it) has become corrupted and has been spinning up this unused middleware container along with my app containers even though I have this feature disabled.
Because of this Laravel is seeing ALL visitors as the one visitor, thus sharing a single session. This explains why my visitors were all being logged in as each other.
I am posting this here in case anyone in the future encounters the same sessions issues with Azure App Service. You can identify the issue by opening Azure log stream in another tab and then restarting your web app. If you see two containers being started, this is the cause of the issue.
I have posted a screenshot here