If I got this right, what you’re saying is:

In IIS, you have the website containing a “root” virtual folder, and within the virtual folder you want have “dist” folder containing Angular app, or you are saying that the “root” virtual folder should point to “dist”.

In either case, whichever folder that is pointed to the “dist” folder should be created as an “Application” in IIS, and not a “virtual folder”. This is because the IIS needs to treat it as an application so that it can apply the `web.config` correctly. Once you do that, you can set the `base-href` as directed in the article and you should be good to go.

I would be happy to help you out further if you still could not get it right. In that case, the easiest way for me to help would be to see a screenshot of your IIS setup with the directories visible for me.