A circular reference to a symbolic directory is present in the agent configuration
Cause
When a logging directory (included in the agent filelog config) on the server has C:\SymbolicLink, that points back to "C:\LogInsight", this causes a infinite loop for liagent to scan the log files under directory=C:\LogInsight\SymbolicLink* which in turn causes the high CPU usage.
Resolution
Remove the symbolic link directory, and the CPU usage will return to normal levels.