Windows Authentication using Kestrel only works with localhost

Question

I have a C# web application hosted on Kestrel using Windows Authentication. For some reason my endpoints only work when using localhost. If I use an IP address, hostname or 127.0.0.1 I get a 401 response and the web browser prompts with a login dialog. I need to make it work with hostname or IP address as well. I don't want to use IIS or HTTP.SYS.

I have tried calling setspn to register the web application but it makes no difference:

setspn -S HTTP/server.development.local development\x

My server FQDN: server.development.local
Username: development\x

My code looks like this:

    public class Program
    {
        public static void Main(string[] args)
        {
            var builder = WebApplication.CreateBuilder(args);

            builder.Services.AddAuthentication(NegotiateDefaults.AuthenticationScheme).AddNegotiate();
            builder.Services.AddAuthorization(options =>
            {
                options.FallbackPolicy = options.DefaultPolicy;
            });

            builder.Services.AddControllers();
            builder.WebHost.ConfigureKestrel(serverOptions =>
            {
                serverOptions.ListenAnyIP(60100);
            });

            var app = builder.Build();

            app.UseStaticFiles();
            app.UseRouting();
            app.UseAuthentication();
            app.UseAuthorization();

            app.UseEndpoints(endpoints =>
            {
                endpoints.MapControllers();
            });

            app.Run();
        }
    }
}

    [Authorize]
    [ApiController]
    [Route("[controller]")]
    public class HelloController : ControllerBase
    {
        [HttpGet]
        public IActionResult Get()
        {
            var user = HttpContext.User?.Identity?.Name ?? "N/A";

            return Ok(user);
        }
    }