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Hello Len,
The above exception happened might be the user account does not have enough access permission to create a file on that file path. or the previous process was dropped/stopped forcefully.
Good to hear, it is working again.
Yes, AxCrypt app used to create a temporary folder(C:\Users\‘User Name’\AppData\Local\AxCrypt) inside the users folder only. There AxCrypt will keep the local app settings cache and logs.