HTTP 502.5 - ASP.NET Core cannot start in IIS

I am having trouble starting an ASP.NET Core website on IIS on a Windows Server 2012

I get the following error in the Windows EventLog:

Application 'MACHINE/WEBROOT/APPHOST/IDENTITY' with physical root 'D:\CompanyName\IdentityServer\' failed to start process with commandline 'dotnet .\identityserver.dll', ErrorCode = '0x80004005 : ff.

I enabled stdout logging, but the log files it produces are empty = 0kb. I updated the entire folder to have full control for the IIS Application Pool user.

I also installed the Hosting Bundle, and the Microsoft Visual C++ 2015 Redistributable...

The application runs without problem, when I run it in the command line:

dotnet .\identityserver.dll

The only way I can get it running, it to set the Application Pool Identity to NETWORK SERVICE

So to me it seems it is a permission issue, but the application pool identity has accesss to everything in the websites folder??

Do you have install .NET Core Runtime to you server and restart IIS? If already installed one. try check your Application pool > ".NET Framework version" selected at "No Managed Code" If still don't work try change below code in "web.config"

  <aspNetCore processPath="dotnet" arguments=".\mywebsite.dll" stdoutLogEnabled="true" stdoutLogFile=".\logs\stdout" />
to 
  <aspNetCore processPath="C:\Program Files\dotnet\dotnet.exe" arguments=".\mywebsite.dll" stdoutLogEnabled="true" stdoutLogFile=".\logs\stdout" />

https://www.microsoft.com/net/download