VSTS IIS Web App Deploy fails with return 2148734720

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I configured releases same way for a couple of our servers but I have issue with one of them (others work perfectly):

[error]Failed to deploy web package to IIS website.

[error]Error: C:\vstsagent\A2_work_tasks\IISWebAppDeploymentOnMachineGroup_1b467810-6725-4b6d-accd-886174c09bba\0.0.20\MSDeploy3.6\msdeploy.exe failed with return code: 2148734720

Unfortunately I can't find anything helpful related to this error Code.

My release configuration:

  1. IIS Web App Deploy (Preview)

  2. Deployment group with one specific staging server (I'm using on-premise agent)

  3. Website name: correct name of my website in IIS

  4. Virtual Application: empty field

  5. Package of Folder: zip chosen from build drop artifacts

  6. Selected "XML variable substitution"

  7. Selected "Remove Additional Files at Destination"

What I've already tried with no luck:

  • manually turn of application

  • delete all files in application folder

  • changing user account to use for the service

Again - same configuration for other servers works fine.

Servers configuration: Windows Server 2012R2 Standard x64

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