While attempting to build a Unreal 5.2 Project on a new development machine.
I received this error.
Command line error D8037: cannot create temporary il file; clean temp directory of old il files
It appears this can be caused by a number of different things.
In my case it was due to having incredibuild installed. Which was included with the Visual Studio Installer when installing the Game Development for C++ workload.
Uninstalling this component fixed my issue.