I provided the Logging Directory from the User settings and even clicked on the checkbox for "Run Designer x64 at a lower priority". However, when I tried running a test workflow, it ran successfully but with a message "Unable to create log file".
What are the likely causes for it not being able to generate log files?
Maybe you could try right clicking on the Alteryx Designer App > Run as Admin... ?
It might be that you need to admin access to the D drive. Try saving the log files in your documents to confirm this.