Hi,
Overall, it is best to log an official case to Microsoft support as the agent should not significantly degrade the performance of your VM. Specifically, to the rule on the screenshot it is best to configure it according to what you need to monitor. For example, LOG_DEBUG seems too much. Maybe you can switch to LOG_NOTICE, LOG_WARNING or LOG_ERR. Also check if you need all the logs listed. May be if you do not need some you can set them to none.
Please "Accept the answer" if the information helped you. This will help us and others in the community as well.