website hosted on IIS won't load after changing/creating web.config

[Miguel2013]

bros, I am using iis to host 3 websites on 2 windows 10 laptops with ver: 22h2 build: 19045.2728
the problem is that IIS seems buggy and both laptops are faling to serve the page hosted for connection in a web browser.

I'm not using a binding domain name for now. If i use one of the default names and no other configuration IIS works.
but if I use a custom name for the homepage then it breaks, if I delete the web.config file and use 1 of the 5 default names for the homepage then it works.

But if I use a custom default name for the homepage then loading the page on the browser fails... the wierd thing is once a web.config file is created even if i use one of the default names the homepage won't load neither.

Also no other resource loads even a simple jpg when linked directly:
IIS 10.0 Detailed Error - 500.19 - Internal Server Error

this is my web.config file code:

<?xml version="1.0" encoding="UTF-8"?>
<configuration>
    <system.webServer>
        <defaultDocument>
            <files>
                <add value="home.htm" />
            </files>
        </defaultDocument>
    </system.webServer>
</configuration>

those are images of the 2 errors for 2 pages one trying to load the homepage and the second trying to load a jpg image I use edge cause is the fastest loading browser.
the other image is of the default document feature on IIS in windows 10.