After an in place upgrade from AX2012R2 to AX2012R3, I was receiving lots of error messages when CIL compiling or dealing with the AIF.

Cannot create temporrary file c:\program files (x86)\Microsoft Dynamics AX\60\Client\app\standard\temp\$tmp0003ffff.$$$. The disk may be full

Temporary File Error

Found the answer to resolve this issue  by editing the registry:

HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control\Terminal Server]

Set “PerSessionTempDir” to equal dword:00000000

Thanks for the information from Ajay Odedra: Link (Link references AX2009 but still seems to be a problem in AX2012 and works fine)