I\'ve seen many issues like this that have been solved and the problem was mostly due to streams not being disposed of properly.
My issue is slightly different, here
The create method opens the file for writing and returns a FileStream object for you to work with. Just because you are not referencing it does not mean it does not need to be returned.
foreach (Images item in ListOfImages)
{
newPath = Path.Combine(newPath, item.ImageName + item.ImageExtension);
FileStream f = File.Create(newPath);
f.Write(item.File, 0, item.File.Length);
}