Symptoms

Receiving "Not enough storage is available to process this command" error when trying to create a package on K2 server. There is no drive space issues on the server C drive at the time when this error gets logged.
 

Diagnoses

The issue was caused by Package and Deployment Cache.
 

Resolution

You can try clearing Package and Deployment cache to resolve this issue following the steps listed below:

1. From Package and Deployment tool > File > Options > click Delete Files button.
2. Navigate to C:ProgramDataSourceCodeTemp on the server and move all temp files from this directory to separate folder.
3. Restart Package and Deployment, and try again.