Kobalt Oil-free Compressor spits water

Air is heated when it is compressed, and that hot/warm air carries moisture from the atmosphere. If the water trap is not far enough away from the compressor for the air to cool off prior to reaching it, much of the moisture will pass right past the water trap.

That is a good point. And not knowing the OP's weather lately, if it is extremely humid and or rainy it will be BAD

If possible take the output delivery fitting away from the compressor pump fitting into the tank.