May not be a SQL issue but an issue with the VM and/or the host.  Have you had the sys admins check things on their end?

Took a little time to reformat your code:

SELECT
  [GL_TransLines].[GLL_Account]     AS "Account"
  , [GL_TransLines].[Amount]        AS "Current Expenses"
  , [GL_TransLines].[COP_Period]    AS "Period"
  , [GL_TransLines].[GLT_TransDate]...

Changed my code some:

-- your exec: EXEC sp_executesql @sql, N'@SearchResultsSetID INT', @SearchResultsSetID, '@ItemNameInput NVARCHAR(100)', @ItemNameInput;
DECLARE @SQLCmd NVARCHAR(MAX)
        , @SQLParm NVARCHAR(MAX)
        ,...

This is how I would write your code that you posted.  I understand that you are putting pieces together, but I think this helps illustrate what you are attempting to...

Just curious, but looking at the execution plans for the queries populating the temp tables, is the DISTINCT actually needed?  The number of rows entering and leaving the sort operator...