There are some key differences that will become more apparent as you get into more advanced use cases.
Functions are actually called when you place nodes to call the function. That means you can target them (i.e. "call a function on another object"), and they allow for communication between Blueprints.
Macros take the nodes from the macro graph, and actually replace the macro node with a copy of all those nodes. Basically, when the Blueprint is compiled, the macro copies all the graph nodes, and pastes them in where the macro node is.
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