in production release, spa services is expecting production build of react. the publish folder should have a wwwroot folder which is deployed to IIS. so if you look at IIS site content, index.html should be at the site root. there should be a static folder at the root which has the react js files
/index.html
/static
/js - *.js
/css - *.css
/<your webapi app name>.dll
other files as required
note: in production, spa services is acting as a static file handler.