Cannot read configuration file : web.config

Trying to run a sample asp.net core web app, I downloaded from github.  I get the following error:

Error Code  0x80070003

Config Error  Cannot read configuration file

Config File  \\?\.....\web.config

Here is the project.json

{"dependencies": {"Microsoft.NETCore.App": {"version": "1.0.0","type": "platform"
    },"Microsoft.AspNetCore.Diagnostics": "1.0.0","Microsoft.Extensions.Configuration.FileExtensions": "1.0.0","Microsoft.AspNetCore.Server.IISIntegration": "1.0.0","Microsoft.AspNetCore.Server.Kestrel": "1.0.0","Microsoft.Extensions.Logging.Console": "1.0.0","Microsoft.Extensions.Configuration.Json": "1.0.0","Microsoft.AspNetCore.StaticFiles": "1.0.0","Microsoft.AspNetCore.Mvc": "1.0.0","Microsoft.EntityFrameworkCore.SqlServer": "1.0.0","Microsoft.AspNetCore.Identity.EntityFrameworkCore": "1.0.0","Microsoft.EntityFrameworkCore.Tools": "1.0.0-preview2-final","Microsoft.AspNetCore.Razor.Tools": {"version": "1.0.0-preview2-final","type": "build"
    }
  },"tools": {"Microsoft.AspNetCore.Server.IISIntegration.Tools": "1.0.0-preview2-final","Microsoft.EntityFrameworkCore.Tools": "1.0.0-preview2-final","Microsoft.AspNetCore.Razor.Tools": "1.0.0-preview2-final"
  },"frameworks": {"netcoreapp1.0": {"imports": ["dotnet5.6","portable-net45+win8"
      ]
    }
  },"buildOptions": {"emitEntryPoint": true,"preserveCompilationContext": true
  },"runtimeOptions": {"configProperties": {"System.GC.Server": true
    }
  },"publishOptions": {"include": ["wwwroot","web.config"
    ]
  },"scripts": {"postpublish": [ "dotnet publish-iis --publish-folder %publish:OutputPath% --framework %publish:FullTargetFramework%" ]
  }
}

Here is the web.config.  Not sure what is wrong with it:

<?xml version="1.0" encoding="utf-8"?><configuration><!--
    Configure your application settings in appsettings.json. Learn more at http://go.microsoft.com/fwlink/?LinkId=786380
  --><system.webServer><handlers><add name="aspNetCore" path="*" verb="*" modules="AspNetCoreModule" resourceType="Unspecified"/></handlers><aspNetCore processPath="%LAUNCHER_PATH%" arguments="%LAUNCHER_ARGS%" stdoutLogEnabled="false" stdoutLogFile=".\logs\stdout" forwardWindowsAuthToken="false"/></system.webServer></configuration>

How do you troubleshoot this error?

Visual Studio Update 3

Windows 10