Here is what I see in SQL Profiler:

exec sp_executesql N'-- NAOMIN/ADMIN sysmanager:item_edit.sct:my_dataform.dataenvironment.opentables:81

if object_id(''tempdb..#csrI_Item'') is not null drop table #csrI_Item
select * 
  into #csrI_Item
  from i_items  
  where department =  @P1  --''RETAIL    ''
  and category = @P2  --''BK-CHILD  ''
  and item = @P3  --''ALICE     ''
SELECT * from #csrI_Item',N'@P1 varchar(10),@P2 varchar(10),@P3 varchar(10)','RETAIL    ','BK-CHILD  ','ALICE     '

-- and then the next batch which is failing 

-- NAOMIN/ADMIN sysmanager:item_edit.sct:my_dataform.dataenvironment.opentables:88

select * from i_attlnk WHERE invent_id in (select invent_id FROM #csrI_Item)
DROP TABLE #csrI_Item

BTW, the fields in the table are CHAR(10), not varchar(10), not sure if this is important.

So, the reason for failure is obvious now. Do you see a way to solve without embedding values back?