HTTP Error 500.31 - Failed to load ASP.NET Core runtime even after isntalling Hosting Bundle

Question

I have an ASP.NET Core 7 API with front end on React.js. We recently migrated it to .NET 7 it was previously built on .NET 5.

I'm trying to deploy it on the production server where I have already installed .NET 7 hosting bundle along with previously deployed .NET 3, 5 and 6 for dependencies on other projects.

I have checked dotnet --info and all of these are listed there as well.

We have already tested this setup on dev server and faced no issues but when Im trying to test the app I'm getting

HTTP Error 500.31 - Failed to load ASP.NET Core runtime. Common solutions to this issue : specified version of Microsoft.AspNetCore.App was not found.

I have checked application logs in the event viewer and this is what Im getting there.

Unable to locate application dependencies. Ensure that the versions of Microsoft.NetCore.App and Microsoft.AspNetCore.App targeted by the application are installed. Process Id: 6828. File Version: 17.0.23196.10. Description: IIS ASP.NET Core Module V2. Commit: 5a4c82ec57fadddef9ce841d608de5c7c8c74446

I'm badly stuck at what I have missed any help in this.