css was not loaded because its MIME type, "text/html", is not "text/css"
Looks like your code is requiring a login to access the CSS stylesheet, and returning a HTML login page instead of the CSS.
To verify, try pasting the URL to the stylesheet into your browser, for instance http://localhost:55381/Styles/Site.css - if you get a login page instead of CSS, that's what you need to fix.
@DavidPrecious gave a great answer that led me to the solution.
In my case, the local computer's Users group needed to be given Read permissions to the c:\Inetpub folder in order to allow the static content to be delivered properly.
Try this:
<location path="~/Styles">
<system.web>
<authorization>
<allow users="*"/>
</authorization>
</system.web>
Where Styles is the folder that contains style sheet. I solved it this way