Functions are not picked up by the app when using pages

what could be the most suspected reasons for the functions not being picked up? I am testing locally using wrangler pages dev -- npm run dev and requests to functions result in 404?

when using framework provided dev command (e.g. npm run dev) for local development the app becomes available both on port 3000 (astro/vanillajs) and port 8788. On the 3000 port functions do not work and the request to the api results in 404 not found, is it normal?

on port 8788 app seems to work but in the console I see [pages:err] Error: Could not proxy request: TypeError: fetch failed error with status 502 bad gateway

also, what does Starting inspector on failed: address already in use mean?
I am not running any other apps that may potentially use 9229