IIS doesn't serve any static files

Question

Recently, my local IIS (and IIS Express) have stopped supplying any static files. All static files return 404 Not found, and there seems to be no reason for this. Even with a completley new, clean project:

Looking at the tracing logs shows that the request ends up in StaticHandler and that fails in the FILE_CACHE_ACCESS module with the error " The system cannot find the file specified ".

The "physical path" of the file is indeed correct, and navigating there shows the file. The physical path is also absolute, so there should be no issues with relative paths. The permissions of the file has been set to Everyone without change, so that is not the issue.

I've made sure case sensitive is disabled as per this SO answer

Static Content is enabled in windows features, as suggested in this post

Full web config:

<?xml version="1.0" encoding="utf-8"?>
<!--
  For more information on how to configure your ASP.NET application, please visit
  https://go.microsoft.com/fwlink/?LinkId=301880
  -->
<configuration>
  <appSettings>
    <add key="webpages:Version" value="3.0.0.0"/>
    <add key="webpages:Enabled" value="false"/>
    <add key="ClientValidationEnabled" value="true"/>
    <add key="UnobtrusiveJavaScriptEnabled" value="true"/>
  </appSettings>
  <system.web>
    <compilation debug="true" targetFramework="4.7.2"/>
    <httpRuntime targetFramework="4.7.2"/>
  </system.web>
  <system.webServer>
    <modules runAllManagedModulesForAllRequests="true" />
  </system.webServer>
  <runtime>
    <assemblyBinding xmlns="urn:schemas-microsoft-com:asm.v1">
      <dependentAssembly>
        <assemblyIdentity name="Antlr3.Runtime" publicKeyToken="eb42632606e9261f"/>
        <bindingRedirect oldVersion="0.0.0.0-3.5.0.2" newVersion="3.5.0.2"/>
      </dependentAssembly>
      <dependentAssembly>
        <assemblyIdentity name="Newtonsoft.Json" publicKeyToken="30ad4fe6b2a6aeed"/>
        <bindingRedirect oldVersion="0.0.0.0-12.0.0.0" newVersion="12.0.0.0"/>
      </dependentAssembly>
      <dependentAssembly>
        <assemblyIdentity name="System.Web.Optimization" publicKeyToken="31bf3856ad364e35"/>
        <bindingRedirect oldVersion="1.0.0.0-1.1.0.0" newVersion="1.1.0.0"/>
      </dependentAssembly>
      <dependentAssembly>
        <assemblyIdentity name="WebGrease" publicKeyToken="31bf3856ad364e35"/>
        <bindingRedirect oldVersion="1.0.0.0-1.6.5135.21930" newVersion="1.6.5135.21930"/>
      </dependentAssembly>
      <dependentAssembly>
        <assemblyIdentity name="System.Web.Helpers" publicKeyToken="31bf3856ad364e35"/>
        <bindingRedirect oldVersion="1.0.0.0-3.0.0.0" newVersion="3.0.0.0"/>
      </dependentAssembly>
      <dependentAssembly>
        <assemblyIdentity name="System.Web.WebPages" publicKeyToken="31bf3856ad364e35"/>
        <bindingRedirect oldVersion="1.0.0.0-3.0.0.0" newVersion="3.0.0.0"/>
      </dependentAssembly>
      <dependentAssembly>
        <assemblyIdentity name="System.Web.Mvc" publicKeyToken="31bf3856ad364e35"/>
        <bindingRedirect oldVersion="1.0.0.0-5.2.7.0" newVersion="5.2.7.0"/>
      </dependentAssembly>
    </assemblyBinding>
  </runtime>
  <system.codedom>
    <compilers>
      <compiler language="c#;cs;csharp" extension=".cs"
        type="Microsoft.CodeDom.Providers.DotNetCompilerPlatform.CSharpCodeProvider, Microsoft.CodeDom.Providers.DotNetCompilerPlatform, Version=2.0.1.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35"
        warningLevel="4" compilerOptions="/langversion:default /nowarn:1659;1699;1701"/>
      <compiler language="vb;vbs;visualbasic;vbscript" extension=".vb"
        type="Microsoft.CodeDom.Providers.DotNetCompilerPlatform.VBCodeProvider, Microsoft.CodeDom.Providers.DotNetCompilerPlatform, Version=2.0.1.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35"
        warningLevel="4" compilerOptions="/langversion:default /nowarn:41008 /define:_MYTYPE=\&quot;Web\&quot; /optionInfer+"/>
    </compilers>
  </system.codedom>
</configuration>

Answer 1

Finally solved. It was an unorthodox permission problem. In my company we have encrypted home folders and recently something changed (working from home?), making IIS unable to access the files.

Solution was not having the code in my home folder. Two days and the solution was moving the folder. Its like missing a semicolon, but the compiling works and it just mysteriously crashes when trying to run the ling of code..