IIS 11 server having issues with %postname%

My site located at americanindustrialinc.com/wp is having major issues when changing permalink settings.

The stylesheet and links go completely out the window whenever i set any permalink structure other than the default.
site is self-hosted on a windows server running IIS 11.

Anybody familiar with windows servers that can tell me what the problem could be?

i set %postname% and i get the following message:

"Permalink structure updated. Remove write access on web.config file now!"

which i assume is normal.
Then i reload my site and it goes all wonky.

when i switch pack to default permalink settings it goes back to normal.

the web.co

<?xml version="1.0" encoding="UTF-8"?>
			<rule name="wordpress" patternSyntax="Wildcard">
				<match url="*"/>
						<add input="{REQUEST_FILENAME}" matchType="IsFile" negate="true"/>
						<add input="{REQUEST_FILENAME}" matchType="IsDirectory" negate="true"/>
				<action type="Rewrite" url="index.php"/>

Screenshot after enabling %postname%