Can we deploy a Chrome extension through local http server through GPO settings?

I have a Windows system that is a part of a domain. I've imported the domain GPO chrome admx file and then created the Chrome GPO policy for 'ExtensionInstallForceList' property. Here I've specified the ID for the extension that gets generated when it was loaded in unpacked format. Also, I used the local HTTP server as the place to download. A pseudo value of the property that I used:

eelojgpfkmaaabbbccneneemcahoehjo;http://<some.ip.address>/crx

I've created an IIS server and enabled Directory browsing and then chose the root path of the server to point to the parent folder of 'crx'. I am able to access an xml file present inside crx using this above URL.

However my extension is still not installed. But I also have the extension in the Chrome Webstore and if I use the Webstore URL, the extension is deployed successfully.

Can someone please help me point out exactly what is missing? Is there some issue in the way I configured my IIS server or Could it be because I used an IP address instead of an FQDN or Because the URL is HTTP and not HTTPs or Is it because of some other possible configuration error?