SQL Server – distrb.exe & Logread.exe Using Large SQL.txt Files

I have the following situation:
SQL server 2008 R2 SP2
I have both the Distribution and Subscription database in this server.
LogReader agent and Distribution agent are running in continuous mode

the following file is growing currently (103GB) with readable data
C:\Users\svc-20121\AppData\Local\Temp\SQL.LOG

sample content extracted from the file opened with emeditor:

distrib         2780-768    ENTER SQLAllocEnv 
        HENV *              0x000000000019AA00

distrib         2780-768    EXIT  SQLAllocEnv  with return code 0 (SQL_SUCCESS)
        HENV *              0x000000000019AA00 ( 0x00000000006CFE00)

distrib         2780-768    ENTER SQLFreeEnv 
        HENV                0x00000000006CFE00


.....
SQLAGENT        2af0-1e24   ENTER SQLGetDiagFieldW 
        SQLSMALLINT                  3 
        SQLHANDLE           0x00000000040DAE80
        SQLSMALLINT                  1 
        SQLSMALLINT              -1150 
        SQLPOINTER         0x000000001EBBDDFC
        SQLSMALLINT                 -6 
        SQLSMALLINT *       0x000000001EBBDDF0

SQLAGENT        2af0-1e24   EXIT  SQLGetDiagFieldW  with return code 100 (SQL_NO_DATA_FOUND)
        SQLSMALLINT                  3 
        SQLHANDLE           0x00000000040DAE80
        SQLSMALLINT                  1 
        SQLSMALLINT              -1150 
        SQLPOINTER         0x000000001EBBDDFC
        SQLSMALLINT                 -6 
        SQLSMALLINT *       0x000000001EBBDDF0

When i tried to delete it windows will say it is used by LogRead.exe and Distrib.exe and when i stop them it says another unrelated instance on that machine is using it

any help appreciated?