I have the following section added to my web.config:
<system.webServer>
<caching>
<profiles>
<add extension=".html" policy="CacheUntilChange" kernelCachePolicy="DontCache" location="Client" />
<add extension=".htm" policy="CacheUntilChange" kernelCachePolicy="DontCache" location="Client" />
<add extension=".gif" policy="CacheUntilChange" kernelCachePolicy="DontCache" location="Client" />
<add extension=".js" policy="CacheUntilChange" kernelCachePolicy="DontCache" location="Client" />
<add extension=".css" policy="CacheUntilChange" kernelCachePolicy="DontCache" location="Client" />
<add extension=".jpg" policy="CacheUntilChange" kernelCachePolicy="DontCache" location="Client" />
</profiles>
</caching>
</system.webServer>
which was taken directly from here
but I am getting an error in my web.config, saying:
Unrecognized configuration section system.web/caching/profiles
also, I see this in visual studio: 
The element caching has invalid child element ‘profiles’, List of possible expected: cache, outputcache, outputcacheSettings, sqlCacheDependency’
did something about this configuration change as I see alot of examples on the web with this exact configuration?
In your screenshot you have the caching under
<system.web>and not<system.webServer>and since profiles is not a valid element under<caching>for<system.web>you will get that error.