If you have access to VM do RDP try running manually with the same command.

Ensure you have webdriver manager installed on that machine.

Try commenting selenium server and adding directConnect:true in config file.

Ensure that no other webdriver instance is running on that VM

Ensure that no other node instance is running on that machine.

Lastly this error may also occur due to your tcp port config on thag VM

Still you need a help connect on LinkedIn we can discuss more about this issue.