IIS 10 - 500 (Internal Server Error)

My website hosted on two environment. Both environment has similar server configuration (Azure VM, Windows server 2016, IIS 10) and same version of code deployed. It was working fine since last one months on both servers but after new release its giving below errors on test02 environment server while in test01 its working fine:

>         GET http://60.10.50.60/Content/bootstrap-datetimepicker.css 500 (Internal Server Error)
>     60.10.50.60/:617 GET http://60.10.50.60/Scripts/bootstrap-datetimepicker.min.js 500
> (Internal Server Error)
>     60.10.50.60/:619 GET http://60.10.50.60/Scripts/messenger/messenger.min.js 500 (Internal
> Server Error)
>     60.10.50.60/:620 GET http://60.10.50.60/Scripts/messenger/messenger-theme-future.js 500
> (Internal Server Error)
>     60.10.50.60/:621 GET http://60.10.50.60/Scripts/jquery.signalR-2.1.2.min.js 500 (Internal
> Server Error)
>     60.10.50.60/:18 GET http://60.10.50.60/Content/font-awesome/css/font-awesome.min.css 500
> (Internal Server Error)
>     60.10.50.60/:615 GET http://60.10.50.60/Scripts/moment.min.js 500 (Internal Server Error)
>     60.10.50.60/:20 GET http://60.10.50.60/Content/messenger/messenger.css 500 (Internal
> Server Error)
>     60.10.50.60/:578 GET http://60.10.50.60/Scripts/angular.min.js 500 (Internal Server Error)
>     60.10.50.60/:623 GET http://60.10.50.60/Scripts/AppScripts.min.js 500 (Internal Server Error)
>     60.10.50.60/:21 GET http://60.10.50.60/Content/messenger/messenger-theme-future.css 500
> (Internal Server Error)
>     (index):624 GET http://60.10.50.60/Scripts/Controllers/HomeControllerAng.min.js 500
> (Internal Server Error)
>     (index):576 GET http://60.10.50.60/fonts/glyphicons-halflings-regular.woff 500
> (Internal Server Error)
>     2(index):578 GET http://60.10.50.60/Scripts/angular.min.js 500 (Internal Server Error)
>     (index):615 GET http://60.10.50.60/Scripts/moment.min.js 500 (Internal Server Error)
>     (index):617 GET http://60.10.50.60/Scripts/bootstrap-datetimepicker.min.js 500
> (Internal Server Error)
>     (index):619 GET http://60.10.50.60/Scripts/messenger/messenger.min.js 500 (Internal
> Server Error)
>     (index):620 GET http://60.10.50.60/Scripts/messenger/messenger-theme-future.js 500

I tried to access the css/js files (for which getting above error) locally on the server (test02) in IE and showing below error and for website hosted on test01 content getting rendered in browser:

HTTP Error 500.0 - Internal Server Error

The page cannot be displayed because an internal server error has occurred.


Detailed Error Information:


Module:  IIS Web Core 

Notification : AuthenticateRequest 

Handler :  StaticFile 

Error Code:   0x80070542 

I refered this link but didn't help and also nothing mentioned about error code 0x80070542.

1. I checked Handler Mappings for staticFile & other handlers as well. Its same on the both the servers where its working (test01) and not working (test02).
2. Root directory also accessible from IIS from both server.
3. Tried updating overrideModeDefault to Allow in applicationHost.config file as below.

   <section name="handlers" overrideModeDefault="Allow" />    

4. App pool account also has same permissions on physical path. 

For me, service Account was removed from OS Administrator group. After added into Administrator group. it is working fine.