Tentacle Script Execution - Cannot create a file when that file already exists

Currently attempting to deploy a web application to IIS8 running on a Windows 2012 R2 VM.

Upon executing the process using the following step template the following error is repeatedly observed:

Validating paramters...
Web Site Name: TestApplication
Application Pool Name: TestApplicationPool
Protocol: https
Port: 8888
SSL Thumbprint: {removed}
IIS Authentication: Windows
Relative Home Directory: E:\Web\TestApplication
Finding SSL certificate with thumbprint {removed}
Found certificate: CN=2012TEST
Attempt 1 of 5 failed: Cannot create a file when that file already exists
Waiting for 1 seconds before retrying...
Retrying...
Attempt 2 of 5 failed: Cannot create a file when that file already exists
Waiting for 1 seconds before retrying...
Info    10:01:37
Retrying...
Attempt 3 of 5 failed: Cannot create a file when that file already exists
Waiting for 1 seconds before retrying...
Retrying...
Attempt 4 of 5 failed: Cannot create a file when that file already exists
Waiting for 1 seconds before retrying...
Error    10:01:38
Failed to execute command
Error    10:01:38
At C:\Users\svcTentacle\AppData\Local\Tentacle\Temp\0596eb83-693c-4b5a-9c3d-645ccc802c55.ps1:62 char:8
Error    10:01:38
+                 throw "Failed to execute command"
Error    10:01:38
+                 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Error    10:01:38
    + CategoryInfo          : OperationStopped: (Failed to execute command:String) [], RuntimeException
Error    10:01:38
    + FullyQualifiedErrorId : Failed to execute command
Info    10:01:38
Retrying...
Info    10:01:38
==============================================
PowerShell exit code: 1
==============================================
Fatal    10:01:38
PowerShell script returned a non-zero exit code: 1
Tentacle version 2.6.0.778

Navigating to the temp system32 location shows no files.

I have attempted workarounds suggested in Issue 1122 with logging on as a different user for the Tentacle along with verifying that my path is set to the 64bit version of Powershell.

I have also attempted this without the SSL Thumbprint option to attempt to rule that out and deleted all references to the website/application pool/physical deployment area/Octopus Server package cache.

Octopus Version: 2.6.0.778
OS: Windows Server 2012 R2

Are there any other suggestions that I could perform to help get this deployment working?

cheers
Wah