Provided herein are systems and methods for sanitizing logged data packets in a distributed system prior to storing them in a remote or third-party data server. Interactions with an application are monitored and values in a data packet are extracted from the interaction. The values are classified based on a classification configuration and respective labels of the values. The values are then sanitized based on the classification to prevent exposure of secure or private data. The sanitized data packets are then logged into the remote data server. The logged data can be used to help resolve events occurring in the application. The classification configuration can be iteratively updated and the interactions repeated to capture data that was previously sanitized to aid in resolution of events. The logged data can also be used in research or analysis, such as for identifying potential improvements to the application.