XMLHttpRequest: Network Error 0x80070005, Access is denied in IE11

Question

I am having an issue with good old IE11/edge in compatibility mode. My code works fine in all other browsers.

I have a simple XMLHtmlRequest from javascript on https://localhost

      request.open('POST', 'https://localhost:5000/api/request', true);
          request.setRequestHeader('Content-Type', 'application/json');
          // request.withCredentials = true;
          request.send(JSON.stringify({
            payload: {
              payment: {
                name: appliance.payment.name,
                amount: appliance.payment.amount,
                reference: appliance.payment.reference,
                merchantaccount: appliance.payment.merchantaccount,
                merchantprovider: appliance.payment.merchantprovider,

              },
              api: revopci.session
            }
          }));
          request.onreadystatechange = function () {
            if (request.readyState == 4) {
              // XMLHttpRequest.DONE == 4
              var result = request.responseText

              console.log("result", result)
              if (result) {
                receive(command, result);
              } else {
                receive(command, '');
              }
            }
          };

on the server (https://localhost:5000) i have following:

var corsOptions = {
  origin: 'https://localhost',
  preflightContinue: true,
  allowedHeaders: "Content-Type,application/json",
  methods: "GET,POST",
  optionsSuccessStatus: 200 // some legacy browsers (IE11, various SmartTVs) choke on 204
}
app.use(cors(corsOptions));

router.post('/request', (req, res) => { 
  axios.post('API_SERVER_URL', data, {
    headers: {
      'X-SessionId': api.id,
      'X-Auth': api.authKey,
    }
  }).then(result => {
    console.log(result)
    let resultCode, resultMessage
    if (!result.data.rawResponse) {
      resultCode = "-1"
      resultMessage = "WorldPay authentication failed."
    } else {
      resultCode = "0"
      resultMessage = result.data.data.paymentStatus
    }
    res.status(201).send("Success")
  }
  ).catch(error => console.log("Error", error))
})

All iam getting now in IE is the error: XMLHttpRequest: Network Error 0x80070005, Access is denied.

I have looked evrywhere on SO and other forums but could find working answer. Also, one suggested changing internet options settings but that doesnt work.

Any help would be appreciated.