I have a web service which is returning data to the desktop application. The problem I am having is, when the web service returns small volume of data everything works fine but
I ran into the exact same symptoms as OP, but my target was an Oracle webservice that I have no control over. WebService calls worked fine from a standalone test web-application, but not from the .NET app that required the implementation.
I don't understand why, but updating the targetFramework
in web.config from 4.5 to 4.6.1 fixed the issue for my application.