Let's say you had an issue in your cluster and you have worked with a Nutanix engineer. 

If the issue needs deep investigation, we usually create a log bundle locally on the CVM and then we ask you to upload it to the portal, then we drop the remote session so the customer doesn’t have to wait online while we investigate.

After generating the bundle, it will be saved locally on your CVM and it's not automatically removed. 

You can delete the bundles if you don't need it anymore to free more space on the CVM, as the CVM is a very critical component in the Nutanix eco-system and it's very important to have enough space and memory for it to perform it's tasks. 

Make sure that you do not remove a directory under "logbay" but simply a file or files inside a sub-directory. 

Usually the two directories that gets populated the most are "/data/logbay/bundles" and "/data/logbay/taskdata", deleting the files inside these directory will free up some space. 
Check out how to create a log bundle at the Logbay Quickstart Guide: kb-6691

Also check my colleague’s post on how to clear CVM space safely.

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