WordPress 4.2.3 on Windows Server 2008 R2 Creating Files as read only

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I figured out the issue, my site had the following in wp-config.php. Also WP-config.php had to be placed at the site root

 define('FS_CHMOD_DIR', true );
 define('FS_CHMOD_FILE', true );
 define('FS_METHOD', 'direct');

Removing the above resolved the issue.