The management of Mascaret compilation is a little bit particular and I was forced to slightly adapt the Telemac compilation script...
And your problem looks like those slight changes didn't works on your computer...
To quickly describe the reason of these adaptation:
During the compilation, you compile the sources and after you create the lib file from the list of compile sources.
For mascaret, due to the use of FOX library, the number of sources become very important and the command to generate the lib file was too long for windows
The only solution I found to by-pass this problem was to remove the list of all file by a shortcut (*.o).
This worked well on my computer on W7-64...
In your case
If you don't need Mascaret module, you could remove it from the list by just specifying -mascaret in the dedicated line
On windows, Mascaret could be installed with a dedicated interface (FUDAA-MASCARET) so it's not necessary useful to compile it. It's also possible to use Mascaret with a dedicated QGIS plugin...
If you really want to compile mascaret, you could try to investigate the problem maybe by removing the specific adaptation for Mascaret in compileTelemac.py (search for 'HOMERE_MASCARET').
Maybe the maximum length of a line changed with W10...
Hope this helps