Solution:
Changing the location of the ITCM log files is usually needed when traces are needed in DETAIL mode and the primary drive on which ITCM is installed does not have enough free space.
This change can be done via command line:
ccnfcmda -cmd SetParameterValue -ps /itrm/trc -pn logfilepath -v "<fullpath of the new location>"
Example: ccnfcmda -cmd SetParameterValue -ps /itrm/trc -pn logfilepath -v "E:\ITCMlogs"
The CAF service must be recycled to apply the change.