Putting web.config in angular application hosted directory stop working .NET 7 minimal API , throw error 405

Question

I have a .NET 7 minimal API app and its hosted in IIS and same API is called in the another angular app which is hosted in same IIS. For example https://example.com is angular app URL where https://example.com/API is the API URL .

Angular apps works fine with the API unless I put the following web.config in the root of angular app to solve the refresh issue but once I put it there API stopped working and it started to throw 405 error message.

Here is the config code:

<?xml version="1.0" encoding="utf-8"?>
<configuration>
  <system.webServer>
    <handlers>
      <remove name="WebDAV" />
      <remove name="ExtensionlessUrlHandler-Integrated-4.0" />
      <remove name="OPTIONSVerbHandler" />
      <remove name="TRACEVerbHandler" />
      <add name="ExtensionlessUrlHandler-Integrated-4.0" path="*." verb="GET,HEAD,POST,PUT,PATCH,DELETE,OPTIONS" type="System.Web.Handlers.TransferRequestHandler" preCondition="integratedMode,runtimeVersionv4.0" />
    </handlers>
    <rewrite>
      <rules>
        <rule name="Angular Routes" stopProcessing="true">
          <match url=".*" />
          <conditions logicalGrouping="MatchAll">
            <add input="{REQUEST_FILENAME}" matchType="IsFile" negate="true" />
            <add input="{REQUEST_FILENAME}" matchType="IsDirectory" negate="true" />
            <add input="{REQUEST_URI}" pattern="^/(api)" negate="true" />
          </conditions>
          <action type="Rewrite" url="/" />
        </rule>
      </rules>
    </rewrite>
  </system.webServer>
</configuration>

and here is code from Program.cs

using DataAccess.DBAccess;
using paylocityapi;
using Microsoft.AspNetCore.Authentication.JwtBearer;
using Microsoft.IdentityModel.Tokens;
using System.Text;
using Microsoft.OpenApi.Models;

var builder = WebApplication.CreateBuilder(args);

//swagger 

builder.Services.AddSwaggerGen(options =>
{
    options.AddSecurityDefinition("Bearer", new OpenApiSecurityScheme
    {
        Scheme = "Bearer",
        BearerFormat = "JWT",
        In = ParameterLocation.Header,
        Name = "Authorization",
        Description = "Bearer Authentication with JWT Token",
        Type = SecuritySchemeType.Http
    });
    options.AddSecurityRequirement(new OpenApiSecurityRequirement
    {
        {
            new OpenApiSecurityScheme
            {
                Reference = new OpenApiReference
                {
                    Id = "Bearer",
                    Type = ReferenceType.SecurityScheme
                }
            },
            new List<string>()
        }
    });
});


//JWT TOKEN 

builder.Services.AddAuthentication(options =>
{
    options.DefaultAuthenticateScheme = JwtBearerDefaults.AuthenticationScheme;
    options.DefaultChallengeScheme = JwtBearerDefaults.AuthenticationScheme;
}).AddJwtBearer(options =>
{
    options.TokenValidationParameters = new TokenValidationParameters
    {
        ValidateIssuer = true,
        ValidateAudience = true,
        ValidateLifetime = true,
        ValidateIssuerSigningKey = true,
        ValidIssuer = builder.Configuration["JwtSettings:Issuer"],
        ValidAudience = builder.Configuration["JwtSettings:Audience"],
        IssuerSigningKey = new SymmetricSecurityKey(Encoding.UTF8.GetBytes(builder.Configuration["JwtSettings:SecretKey"]))
    };
});


// Add services to the container.
// Learn more about configuring Swagger/OpenAPI at https://aka.ms/aspnetcore/swashbuckle
builder.Services.AddEndpointsApiExplorer();
builder.Services.AddSwaggerGen();
builder.Services.AddSingleton<ISqlDataAccess,SqlDataAccess>();
builder.Services.AddSingleton<IEmailService, EmailService>();
builder.Services.AddSingleton<IUserData,UserData>();
builder.Services.AddSingleton<IDetailData, DetailData>();
builder.Services.AddSingleton<IDashboardData, DashboardData>();
builder.Services.AddSingleton<IVendorData, VendorData>();

builder.Services.AddAuthorization();

// Enable CORS
builder.Services.AddCors(options =>
{
    options.AddDefaultPolicy(builder =>
    {
        builder.AllowAnyOrigin()
               .AllowAnyMethod()
               .AllowAnyHeader();
    });
});
var app = builder.Build();

// Configure the HTTP request pipeline.
if (app.Environment.IsDevelopment())
{
    app.UseSwagger();
    app.UseSwaggerUI();
    
}

app.UseHttpsRedirection();

app.ConfigureApi();
app.UseCors();

app.UseAuthentication();
app.UseAuthorization();

app.Run();