One of the scenarios this happens is:
The CRM App Server - where the CRM Application folder is present has low space.
(C>Program Files>Microsoft Dynamics)/
Clear the folder to have at least 1 GB free to resolve the issue.
On a side note, other issues that you may face due to Space issue in the App/DB server are-
CRM stops working
Other Tools that try to connect to CRM will throw - Metadata reference cannot be resolved error.
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