The error happens when the REST methods (POST, PUT, DELETE, etc). are already registered by another application. The following entries in the  web.config helped me to overcome the issue:

<system.webServer>
  <validation validateIntegratedModeConfiguration="false" />
  <modules runAllManagedModulesForAllRequests="true">
    <remove name="WebDAVModule" />
  </modules>
  <handlers>
    <remove name="WebDAV" />
    <remove name="ExtensionlessUrlHandler-ISAPI-4.0_32bit" />
    <remove name="ExtensionlessUrlHandler-ISAPI-4.0_64bit" />
    <remove name="ExtensionlessUrlHandler-Integrated-4.0" />
    <add name="ExtensionlessUrlHandler-ISAPI-4.0_32bit" path="*." verb="GET,HEAD,POST,DEBUG,PUT,DELETE,PATCH,OPTIONS" modules="IsapiModule" scriptProcessor="%windir%\Microsoft.NET\Framework\v4.0.30319\aspnet_isapi.dll" preCondition="classicMode,runtimeVersionv4.0,bitness32" responseBufferLimit="0" />
    <add name="ExtensionlessUrlHandler-ISAPI-4.0_64bit" path="*." verb="GET,HEAD,POST,DEBUG,PUT,DELETE,PATCH,OPTIONS" modules="IsapiModule" scriptProcessor="%windir%\Microsoft.NET\Framework64\v4.0.30319\aspnet_isapi.dll" preCondition="classicMode,runtimeVersionv4.0,bitness64" responseBufferLimit="0" />
    <add name="ExtensionlessUrlHandler-Integrated-4.0" path="*." verb="GET,HEAD,POST,DEBUG,PUT,DELETE,PATCH,OPTIONS" type="System.Web.Handlers.TransferRequestHandler" preCondition="integratedMode,runtimeVersionv4.0" />
  </handlers>
</system.webServer>