Turning on devcache mode will increase the performance on a dev env.
But with just one/two developers doing code changes I don't think it
is the real cause.
RPC errors usually due to server crashes are due to server busy.
Some places to look for:

1.Malloc error seems to be some memory related.
See if any other processes are running at the same time and taking
more ram leaving less to remedy.
2.There seems to be  some bottle neck some where taking more time and
process might be  timing out.
Check the SQL logs to see if the db is taking more time for response.
Also looking at api logs also will tell you at which operation it is
restarting.
3. BMC has released a patch 7.5p3A for devstudio to fix an issue where
dev studio is crashing the arserver.
4. If possible stop all other processes (DSO,Email,Archive,Escalations
etc..) and try the same thing.

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