Having too many bindings breaks Windows Authentication

Our website starts prompting credentials after adding the 65th binding for the same site in IIS. Even if we enter credentials correctly, we are not able to authenticate. It’s the same for all bindings (Tested with 20th and 45th bindings).

Using Windows Server 2012 R2

Disabling kernel-mode authentication fixes the issue. I am looking for a root cause of why kernel-mode auth fails after the 65th binding?

Failed Request Tracing shows:

401.1 No credentials are available in the security package (0x8009030e)