I created a Azure VM in DevTestLab using base Windows Server 2016 DataCenter. Then I enabled web server role referencing this.
It seems there is some issue with IIS 10 as I am not able to access default website on this server. To verify further, I also tried to host a website with single html page but same issue "Page can't be displayed."
I gave a try with chrome browser and able to browse localhost website on chrome. So IIS 10 seems good on VM. Initially I guess was IIS 10 not configured properly but now it seems proxy on IE not allowing website content getting displayed. Now I am able to proceed with chrome and will reach out our network team if required.