To address this issue,

First make a backup of the MetaBase:
Open IIS Manager
Right click on server->All Tasks->Backup/Restore Configuration...
Click Create Backup
Give the backup a name (e.g. 'Backup before fix')
Click OK, Close

Then enable direct Metabase Edit
Open IIS Manager
Right click on server and go to Properties
Check "Enable Direct Metabase Edit"
Click OK

Open the file C:\WINDOWS\SYSTEM32\INETSRV\METABASE.XML from Notepad.

Look for <IIsWebVirtualDir Location="/LM/W3SVC/1/ROOT/Microsoft-Server-ActiveSync"> and just below it, you
will see:

DoDynamicCompression="TRUE"
DoStaticCompression="TRUE"

Change both of these to FALSE (There are more of these throughout the
METABASE.XML
file, be sure only to change these two)

Save the Metabase.xml file back and

restart IIS: Start->Run->IISRESET