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VirusScan has Access Protection Policies. One of them is "Prevent common programs from running files in the temp folder", which is enabled by default. This means it blocks programs from running files in any folder that contains the string "temp", which obviously includes the Temporary Internet Files folder. They could try editing the policy and add your application to the "Processes to exclude" list. Actually, they should check their VS logs first to verify which policy is blocking the action. It may be a different policy.
Thanks Jay. Communicated the same to our network team (who are in different time zone). Hopefully, this is going to solve it.
I'm not a product expert but I've moved this thread to the VirusScan Enterprise area.