Unable to access local IIS site after upgrade but site is accessible from remote machines

Running on windows 10 x64 1803, I was using VS 2017/2019 to develop our ASP.NET web forms site. This has been working for years without any problems.

Last week I tried to upgrade to windows 10 1809 and when trying to access the web site I develop the browser was hanging for a few min and then I got a message that the connection was reset. Looking on failed requests log on IIS I saw the actual error was "he semaphore timeout period has expired. (0x80070079)" on the final GENERAL_FLUSH_RESPONSE_END step (I can see the response that was built before this step but it is for some reason not getting into the browser - this happens on all browsers on my pc)

I then rolled back to version 1803 and was able to develop again.

few days ago I decided to upgrade directly from 1803 to 1903, The upgrade went well and I was able to access the site on my machine (actual upgrade process was started via RDP from home and I was able to work on the site over the weekend without any issue). Today when I got into the office suddenly the site is again not accessible from any browser on my machine.

1. I reboot my PC, connect to it using RDP with my domain user, site works without any issue
2. I reboot my PC, log on with my domain user (not RDP), site does not work
3. I reboot my PC, log on with a local administrator account, site work perfectly
4. I reboot my PC, connect to it using RDP (site works), I disconnect the session, then log on on the actual machine - session is resumed - site does not work, I then go back to RDP and site is not working there either until a reboot

It appears to be something with my user settings when I am logged on the physical machine and not RDP that prevents forms authentication from working on all browsers.

Other things I did check:

1. Driver updates to the NIC did not help, also win10 network reset did not help
2. Site is accessible all the time from remote machines & from windows sand box
3. Some aspx pages on my dev site that do not require forms authentication work but when trying to access the site itself (I am redirected to the login page and then the browser cannot access the site - The semaphore timeout period has expired. (0x80070079))
4. I tried removing my ESET anti virus/firewall without any success
5. Site does work when running in IIS express

6. Event log does not show any specific error except a warning (But the warning does not appear in correlation with me being unable to access the site locally.)

   The machine-default permission settings do not grant Local Activation permission for the COM Server application with CLSID

{C2F03A33-21F5-47FA-B4BB-156362A2F239} and APPID {316CDED5-E4AE-4B15-9113-7055D84DCC97} to the user \ SID (S-1-5-21-...........)

from address LocalHost (Using LRPC) running in the application container Microsoft.Windows.ShellExperienceHost_10.0.18362.1_neutral_neutral_cw5n1h2txyewy SID (S-1-15-2-.......). This security permission can be modified using the Component Services administrative tool

Any ideas on how to diagnose this issue would be appreciated