Wordpress 404 Error When Using Permalinks /%postname%/

Put the following content in the .htaccess file in the root folder:

<IfModule mod_rewrite.c>
RewriteEngine On
RewriteBase /blog/
RewriteRule ^index\.php$ - [L]
RewriteCond %{REQUEST_FILENAME} !-f
RewriteCond %{REQUEST_FILENAME} !-d
RewriteRule . /blog/index.php [L]
</IfModule>

 Add Rewrite to web.config:

<?xml version="1.0" encoding="UTF-8"?>
<configuration>
  <system.webServer>
    <directoryBrowse enabled="false" />
    <defaultDocument>
      <files>
        <clear />
        <add value="index.php" />
      </files>
    </defaultDocument>
    <rewrite>
      <rules>
        <rule name="Main Rule" stopProcessing="true">
          <match url=".*" />
          <conditions logicalGrouping="MatchAll">
            <add input="{REQUEST_FILENAME}" matchType="IsFile" negate="true" />
            <add input="{REQUEST_FILENAME}" matchType="IsDirectory" negate="true" />
          </conditions>
          <action type="Rewrite" url="index.php/{R:0}" />
        </rule>
      </rules>
    </rewrite>
  </system.webServer>
</configuration>