Likely an upstream bug in Duplicity. Maybe newer version of Duplicity will have this fixed.
It seems to be somewhat worse issue. The Duplicity continues restore even after failure and finishes with zero error code. This can lead to false impression of successful restore.
It seems to happen even with enough space. If it restores a large file and there is not enough space in /tmp, similar issue might happen.
Maybe this would be a good candidate for automated tests.
Expected behavior: It exits with a proper error message.