not sure if it's of interest for you but we (Catalyst) IT) pushed changes through to Moodle 3.11 that change the way the folder (and assignment) build the download-all package works so that it uses the PHP Zip streaming library (and no longer uses localcachedir like that.)
but... there are several other things that still use localcachedir in a similar way, so you still need a decent amount of space available for it to use.
but... there are several other things that still use localcachedir in a similar way, so you still need a decent amount of space available for it to use.