Application Pool in IIS errors out when attempting to start automatically after a reboot

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We recently upgraded to Windows 2016 from Windows 2012 R2. We have a website on IIS (8.5 on 2012) and now after upgrading, it is now on IIS 10. There is one Application Pool for this site using a custom Domain id as the identity. The issue is the Application Pool does not start automatically after a reboot because it errors out with the below error message. I can start it up manually.

"The identity of application is invalid. The user name or password that is specified for the identity may be incorrect, or the user may not have batch logon rights. If the identity is not corrected, the application pool will be disabled when the application pool receives its first request. If batch logon rights are causing the problem, the identity in the IIS configuration store must be changed after rights have been granted before Windows Process Activation Service (WAS) can retry the logon. If the identity remains invalid after the first request for the application pool is processed, the application pool will be disabled. The data field contains the error number."

We need it to be that custom id because it is used in several places in the application.

Things we already tried based on several suggestions in stack overflow:

  1. Id already has 'Log on as a Batch Job' and 'Log on as a Service' rights.

  2. It is part of IIS_IUSRS group. In fact, we put it as the local Administrators group (temporarily) to see if that helped.

  3. Changed the id to Network Service and then back to the id.

  4. We delete the temp files in Inetpub every time we reboot.

  5. Made sure the password is correct. In fact, I can login using the id with the password I am using in the Application Pool settings.

We've been stumped on this issue for days. Any other suggestions please we would greatly appreciate it.

Thanks

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