This is applicable to IncrediBuild versions 7.1 and before.

Issue:

Command line error D8037 : cannot create temporary il file 
Usually happens on Helper machines

Cause:

This issue is related to the Windows OS update released on 9.2.2016 .
It happens specifically due to what is said on the following support pages from Microsoft:

• https://support.microsoft.com/en-us/kb/3126587
• https://support.microsoft.com/en-us/kb/3126593

On Windows 10 the responsible update is KB3135173

Fixes:

Install our latest version which includes a fix for this problem. Here is a direct download link:
IncrediBuild version 7.12

IMPORTANT: In case you are using a special internal build (1662 and on) please DO NOT upgrade to this version. A special internal build will be sent to all customers that have received internal builds. ETA: 15.2.2016

2) Uninstalling these updates or rolling back the entire Windows update solves the problem.