Hi Billy,, Both are grammatical. Which one to use, “Will” or “will be verb + ing” depends on the context. If someone asked you when you will work on the matter, the 1 st one is more suitable.
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No, not really. Those paraphrases don't capture the difference between the two. Try these instead.
I'll work on this tomorrow means : I will, but if something comes up, I perhaps won't?
I will be working on this tomorrow means: I have planned something to do to day, and I also have plan to do this tomorrow?