I found following log entry in event log,
Unable to write the generated WCF configuration to local storage. The generated WCF configuration will be used from memory. The contents of the new configuration are written to the following temp file: C:\Users\i<BC Account> \AppData\Local\Temp\Microsoft.Dynamics.AX.Framework.Services.Client.Configuration.ClientConfigurationInternal.log.
Exception details:
System.ComponentModel.Win32Exception (0×80004005): Access is denied
at Microsoft.Dynamics...(read more)
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