I'd not use C:\Temp, to begin with. It's complaining because it needs to create a bunch of subfolders, and the ones it needs to create already exist. It can't overwrite them. Try specifying the name of an empty folder.
I have tried different options in this direction, creating new folder in 'Temp' and outside temp but I get same error, I don't understand when command is itself creating the folder why is it saying already exists?