(Solved) The directory specified for caching compressed content is invalid. Static compression is being disabled

I have come across to “Static compression is being disabled” error message in Event Viewer while reviewing logs for a web server. This error didn’t cause any user-side issue but it kept being flagged by SCCM.

Here is the Event 2264 with the entire error description:

The directory specified for caching compressed content C:\inetpub\temp\IIS Temporary Compressed Files\domain.com is invalid. Static compression is being disabled

Event 2264 - Static compression is being disabled
Event 2264 – Static compression is being disabled