Have to bring this up again, I have the same issue, and has been plaguing me for years since the iPod classic. Now though, it is my regular MTP/MSC Android phone with a 128GB sd card. I have in the settings to encode files anything above 191k AAC bitrate, tried all sorts of artwork settings, and the temp folder storage builds only with encoded files that are never transferred to the device. Some files below 191k are copied fine, but the files that are encoded are built in the temp and never copied over. Only closing Musicbee will wipe the temp folder clean rendering cpu heat, cycles and disk storage a waste because the encoded files are never copied. If it were, I could deal with it by once in a while restarting Musicbee, but not in this case. Thanks.
Edit: Alright! Developer has stated several times throughout different posts that Musicbee should delete temp files automatically, this is true but I just found out that the syncing to MTP device works with auto delete temp files when the "except codec" option is UNCHECKED.
on-the-fly-conversion > convert all files [ ] except <codec> with [<bitrate>]k or less bitrate
In my previous case, I had it checked for AAC and 127k, so convert all 128k aac files or above to the desired on-the-fly conversion bitrate, this triggered an endless build up of temp files in which where "encoded" but never copied to the device. Now unchecked, the temp folder behaves accordingly to auto delete files. This must be a bug if it is checked, right? If someone wants to convert certain codecs at a certain bitrate by checking this box, then he or she will face this problem by temp folder buildup and encoded files not copying over to device. Thanks.