This isn't a direct answer to your question, but I want to post this solution, as it is related.
Today, I found that VS2017 refused to start my web app as it said it couldn't find a web.config file.  
The error message showed the path where it was searching for the web.config in, but it was a folder that had never existed on my laptop (I'd been sent the code from an external company).  Even worse, our project didn't even contain a web.config file, so the error made no sense !!
I spent ages trying to get around this issue, reported by IIS Express with VS2017, and the solution was ridiculous:
I just had to increment the port number which my code was running under.
That's it.
Is this a bug with IIS/VS2017 ?  I don't know.  But it wasted a lot of my time this morning.  And renaming the following folder out of the way, as suggested by other StackOverflow articles, didn't help:
C:\Windows\System32\inetsrv\config
Again, apologies - this isn't a direct answer to the question, but I'm sure I won't be the only person to stumble on this webpage, after receiving this bizarre "Can't find web.config" error, so I think it is useful to document here.