Error message The device is not ready when running Azure devops release pipeline

I moved a website to a new on-prem server and I am currently working on making a CI/CD. As I have been using Azure DevOps for years the release pipelines are already configured. The only thing left to do is to register the new server in the development group. The problem is that when a release is triggered, the service doesn't seem to be able to list the site as part of the Manage IIS website task. It throws a weird error "The device is not ready". It does though manage to change the app pool. See the logs below:

Logs from the Manage IISWebsite step

The NT Authorization\System is a superuser and should have all rights granted by default, so I'm a bit clueless here.. Does anybody have any ideas or suggestions? What am I missing?