WORKAROUND 1
The agent requires at least 1 minute of sleep time in order to truncate. Change the logging settings in the agent Properties within Agent Manager to sleep for at least 1 minute and deselect "Synchronize Continuously"
WORKAROUND 2
Close any tailing program which has the log file open
WORKAROUND 3
Exclude the log file from being audited within the auditing / Anti-Virus solution
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