LoggerEventSource error: Not enough storage is available to complete this operation

I've come upon this strange Not enough storage is available to complete this operation ArgumentException when creating an instance of EventSource derived classes. This class is responsible for creating entries in Windows logs. Strangely enough, there are very few articles on the Internet connecting the class with this particular exception, so I started to investigate. One important thing to notice is that the exception is intermittent. Basically you can cycle a few times with a try/catch block and get a valid instance. That seems to indicate some sort of race condition. So far, this is the easy solution I could find. However, I really wanted to know why does it happen.

If I remove the EventSource class from the searches I get more pages reporting the same exception and one of the reasons that people say it happens is related to the size of the registry. Retrospectively it makes sense, but it never occurred to me that the system registry has a maximum size. But is that the problem? Looking with the EventViewer summary I see something like this:

Of course, the most obvious thing there is the exact size of each log category: 20.00 MB. If one right-clicks on any of the log groups and goes to Properties, the size limit for each is clearly shown and configurable. So is that the problem?

The exception is thrown almost exclusively when the logging is heavy: multiple threads trying to log stuff at the same time. Since retrying usually solves the problem, my guess is that the exception is thrown somewhere between the request for a new log entry and the process that eliminates old entries to allow for new ones. Unfortunately I don't see any configuration option for how many entries to eliminate. I would have liked to clear, let's say, 20% of the log when it is full to make this problem less relevant. Perhaps hidden in the bowels of the system registry there is a way to set this, but at this time I don't know it. Nor is it clear if I have the option to remove more of the less important events rather than just the oldest. Clearly the EventLog class in .NET supports deleting individual log entries, so this is feasible if it ever becomes a real problem.

So far, my solution is to just try again when the error is thrown:

LoggerEventSource eventSource = null; //EventSource derived class (see documentation)
for (var i = 0; i < 5 && eventSource == null; i++)
{
    try
    {
        eventSource = new LoggerEventSource();
    }
    catch (ArgumentException)
    {
        Thread.Sleep(100);
    }
}