TFS Build - Time out error in "AxBuild Compile Log Compile" step


I am using VS 2013 and created a new Build definition (with the standard template defined in XAML file )

There are no build errors and the build creates a new model file/XPOs are exported/Logs have been created in Binaries folder.

But when it reaches the step “AxBuild Compile Log Compile” , I face an issue due to time out error. Tried setting from 60 mts to 600 minutes. But still the same error.

The build was successful when I queued it without this step.

User account which was registered in build controller has full rights to the machine, (I am not sure if this is issue related to permission)

I am using AX2012 R3 and customizations are done in VAR layer.

Any help is highly appreciated

For reference, this question is already discussed in a duplicate thread on another forum.