This line does exist in the Web.config file of our packages for .NET 4. It will prevent some expected errors on postback but it will not prevent all possible causes of "a potentially dangerous request".
500 is just a generic error code, to find out the real error detail see Basic Troubleshooting, there is a way to see error details. But if you install with the wrong version of dotnet then it may not even be able to load the Web.config file so you need to make sure your hosting is configured for .NET 4 (it must use a .NET 4 application pool).
Hope it helps,
Joe