Hello Someiah C S ,
I'm glad that you were able to resolve your issue and thank you for posting your solution so that others experiencing the same thing can easily reference this! Since the Microsoft Q&A community has a policy that "The question author cannot accept their own answer. They can only accept answers by others ", I'll repost your solution in case you'd like to "Accept " the answer.
Issue:
Guidance on Filtering App Traces Logs to Optimize Sentinel Workspace Usage?
Solution:
To optimize costs, I have moved AppTraces logs from Analytics Logs to Basic Logs and set the retention period to 30 days, as they are not being used for search queries. These logs will still be accessible within the App Function itself.
If you have any other questions or are still running into more issues, please let me know. Thank you again for your time and patience throughout this issue.
Please remember to "Accept Answer" if any answer/reply helped, so that others in the community facing similar issues can easily find the solution.
https://learn.microsoft.com/en-us/answers/support/accept-answer#why-only-one-accepted-answer