Out of curiosity, what is the port number that you are using for the service?
As Ulrich indicated, deploy the service without enabling the Auto Restart option.
If the service fails and prior to restarting the service, open a command prompt where the VSE is running and execute a netstat -ao command.
Does netstat show the port in use?
If so, does the PID that is holding that port open belong to VSE or something else?