Unable to execute SSO for the ASP.NET web application running on WS 2016 via IIS 10

We have a legacy ASP.NET application running on the WS 2016 via IIS 10. We did specify all possible settings for the authentication section the way it is instructed for the SSO

However, no matter what was done the Single Sign On is simply not working. The user always is prompted with the authentication popup. And the irony is, on another server we have identical settings, and the Single Sign On works just fine

Any ideas, suggestions?