web.config is commonly used to configure IIS, so even if you are not using ASP.NET 4.x you need it when deploying ASP.NET Core bits. For example, ASP.NET Core module settings are necessary.
"I see that app settings cannot be read" is desired. IIS Manager only integrates with ASP.NET 4.x settings, no more with ASP.NET Core.
The other errors you reported indicate you didn't install ASP.NET Core module yet. Install the hosting bundle from a download page like https://dotnet.microsoft.com/en-us/download/dotnet/6.0 and you are good to go next.