Unable to create a new web project in Visual Studio 2013

Alright - I am able to find the workaround.

If you find this error coming then probably it is to do with the IISExpress or IIS configuration that you may not be able to control from home.

The workaround that I have found is that:

1. Create Project,
2. System will not be able to attach the project, however it has been created. Then browse to that directory where the project has been created, and open the project file in the notepad or any editor.
3. Make sure that <UseIISExpress>false</UseIISExpress>
4. Before modifying further in the project file, Create a virtual directory in your IIS and point to the project path.
5. find <WebProjectProperties> in your project file config.
6. Define the virtual directory path under IISUrl.

Your config file should look something like this:

<WebProjectProperties>
          <UseIIS>True</UseIIS>
          <AutoAssignPort>True</AutoAssignPort>
          <DevelopmentServerPort>0</DevelopmentServerPort>
          <DevelopmentServerVPath>/</DevelopmentServerVPath>
          <IISUrl>http://localhost/YourAppAlias/</IISUrl>
          <NTLMAuthentication>False</NTLMAuthentication>
          <UseCustomServer>False</UseCustomServer>
          <CustomServerUrl>
          </CustomServerUrl>
          <SaveServerSettingsInUserFile>False</SaveServerSettingsInUserFile>
        </WebProjectProperties>

Please use the following path :

Go to MyComputer>Documents>IISExpress>config>applicationhost.config

Right click on applicationhost.config and go to "Properties" option. Now click advanced button and uncheck Encrypt contain security data.

Hope this will solve your problem...!!! :)