NTLM negotiation logged as ERROR

Environment

Windows
.NET Framework 4.8 WebApp

Describe the bug

The situation I came across is when my web application receives a request and that request triggers a request/transaction using HttpWebRequest (System.Net) with NTLM authentication.
This transaction is logged as an error (401) which is the NTLM negotiation response despite the transaction actually giving 200.

Expected behavior

The transaction will be logged as success instead of the current error state