I am getting the error:
HTTP Error 500.21 - Internal Server Error Handler \"CloudConnectHandler\" has a bad module \"ManagedPipelineHandler\" in its module list
I had this issue in Windows 10 when I needed IIS instead of IIS Express. New Web Project failed with OP's error. Fix was
Control Panel > Turn Windows Features on or off > Internet Information Services > World Wide Web Services > Application Development Features
tick ASP.NET 4.7 (in my case)
ASP.NET 4.7