IIS and HttpListener (.NET) with windows authentication - windows

Question

I have a question about windows authentication with IIS and HttpListner
I have following setup (All installed in same windows 8.1 box. No outside communication). All requests are sent as http://localhost/......
IIS
ASP.Net web application authentication
Anonymous: Disabled
Windows Authentication: Enabled
.Net httpListener
running as a Service run as local System Account. and enabled windows authentication
this.httpListener = new HttpListener();
this.httpListener.AuthenticationSchemes = AuthenticationSchemes.IntegratedWindowsAuthentication;
UWP Application (Windows 8.1)
UWP Application is just like a web browser. It has WebView control to see web contents.
Following capabilities enabled
Enterprise Authentication
Internet (Client)
Location
Private Networks (Client & Server)
Problem
When I navigate from the uwp app to the IIS web app it is asking for the credentials by popping up windows dialog. This is annoying for the user experience perspective because user is logged in with same credencials. But When I access Http Listener it is authenticate correctly and no credentials dialog.
Also I checked the requests through fiddler. Initial request is identical, but with next steps for IIS request, it is continuously asking for NTLM.
HTTP/1.1 401 Unauthorized
Cache-Control: private
Content-Type: text/html; charset=utf-8
Server: Microsoft-IIS/8.5
WWW-Authenticate: Negotiate oYHOMIHLoAMKAQGhDAYKKwYBBAGCNwICC........
WWW-Authenticate: NTLM
X-Powered-By: ASP.NET
Initial Request/Response
IIS
Request
GET http://localhost/webapp_net/ HTTP/1.1
Accept-Encoding: gzip, deflate
Host: localhost
Connection: Keep-Alive
Response
HTTP/1.1 401 Unauthorized
Cache-Control: private
Content-Type: text/html; charset=utf-8
Server: Microsoft-IIS/8.5
WWW-Authenticate: Negotiate
WWW-Authenticate: NTLM
X-Powered-By: ASP.NET
Access-Control-Allow-Origin: *
Access-Control-Allow-Methods: GET,POST
Date: Tue, 20 Nov 2018 21:37:24 GMT
Content-Length: 6016
Proxy-Support: Session-Based-Authentication
HttpListener
Request
GET http://localhost/appman HTTP/1.1
Accept: text/html, application/xhtml+xml, */*
Accept-Language: en-NZ
User-Agent: Mozilla/5.0 (Windows NT 6.3; WOW64; Trident/7.0; WebView/2.0; rv:11.0) like Gecko
Accept-Encoding: gzip, deflate
Connection: Keep-Alive
Host: localhost
Response
HTTP/1.1 401 Unauthorized
Content-Length: 0
Server: Microsoft-HTTPAPI/2.0
WWW-Authenticate: Negotiate
WWW-Authenticate: NTLM
Date: Tue, 20 Nov 2018 21:37:18 GMT
Proxy-Support: Session-Based-Authentication
Does anyone have similar experience or explanation for this ?