Permission denied @ rb_sysopen - C:\ProgramData/Amazon/CodeDeploy/ongoing-deployment/<deployment-id>(error)-For CodeDeploy downloadBundle stage triggered via ASG default lifecyclehook for new instance

Whenever a New AMI is created out of a working production windows app machine and is assigned to aws launch template, we are able to launch new instance with ASG. But, if we try to terminate and wait for the instance replacement (In Our case its capacity is 1 for all desired, minimum and maximum) it fails at third time with an error mentioned on the title. This is super weird as it works fine for 1 and 2 time but not for third time. The error above comes from AWS codedeploy which is triggered due to default lifecycle hooks in place on Auto Scaling Group. Thus, after failure it terminates our instance and new one is spawned as a replacement. Now, we face the same error and this cycle goes on until I manually scale down ASG to 0. This is not observed if the instance is launched manually out of ASG and we create deployment trigger manually from the deployment group.