Running a test list using "Run list persisting result" or setting command line runner argument "persistOnEachStep" to True could create files with file name that is too big and cause PathTooLongException. 
This happens if during the test there are too many failures and Test Studio has to write multiple files. Every next file has one more character in its file name than the previous one. Eventually this leads to Exception.  

To reproduce:
Sample test is attached to the internal bug description.