This is driving the whole team crazy. There must be some simple mis-configured part of IIS or our Web Server, but every time we try to run out ASP.NET Web Application on IIS
If you are deploying asp.net.core application you also must install .net core hosting bundle.
https://docs.microsoft.com/en-us/aspnet/core/host-and-deploy/iis/index?view=aspnetcore-3.0#install-the-net-core-hosting-bundle