I was able to solve this issue by removing forwardWindowsAuthToken from the web.config file under wwwroot.

1. Navigate to src/ProjectName/wwwroot
2. Open the web.config
3. In the httpPlatformremove the forwardWindowsAuthToken="true/false" property

Redeploy and mine worked fine.

See here https://github.com/aspnet/Hosting/issues/364 for plenty of discussion

Short Answer

For us the fix was to to UseIISIntegration() on the WebHostBuilder.

public static void Main(string[] args){    var host = new WebHostBuilder()        .UseContentRoot(Directory.GetCurrentDirectory())        .UseKestrel()        .UseIISIntegration() // Necessary for Azure.        .UseStartup<Program>()        .Build();     host.Run();}

More Details

Our web.config looks like this:

<?xml version="1.0" encoding="utf-8"?>         <configuration>                                <system.webServer>                                 <handlers>                                     <add name="aspNetCore"                             path="*"                                       verb="*"                                       modules="AspNetCoreModule"                     resourceType="Unspecified"/>               </handlers>                                    <aspNetCore processPath="%LAUNCHER_PATH%"          arguments="%LAUNCHER_ARGS%"                    stdoutLogEnabled="false"                       stdoutLogFile=".\logs\stdout"                  forwardWindowsAuthToken="false"/>      </system.webServer>                            </configuration>       

Our project.json looks like this:

{  "dependencies": {    "Microsoft.NETCore.App": {      "version": "1.0.0",      "type": "platform"    },    "Microsoft.AspNetCore.Server.IISIntegration": "1.1.0-*",    "Microsoft.AspNetCore.Server.Kestrel": "1.1.0-*"  },  "tools": {    "Microsoft.AspNetCore.Server.IISIntegration.Tools": "1.0.0-preview2-final"  },  "frameworks": {    "netcoreapp1.0": {}  },  "buildOptions": {    "emitEntryPoint": true  },  "publishOptions": {    "include": [      "web.config"    ]  },  "scripts": {    "postpublish": [      "dotnet publish-iis --publish-folder %publish:OutputPath% --framework %publish:FullTargetFramework%"    ]  }}

Our nuget.config looks like this:

<?xml version="1.0" encoding="utf-8"?><configuration>  <packageSources>    <add key="AspNetVNext" value="https://www.myget.org/F/aspnetcidev/api/v3/index.json" />    <add key="NuGet" value="https://api.nuget.org/v3/index.json" />  </packageSources></configuration>

This can also happen if you have an infinite loop in your code.