Hi ThavenshinP,
Basically the threads come up with an appropriate format (.tmp, .dat).
It switch to .err when they failed to be processed at time by bcp.exe or due to lack of perform from your SQL server.
It can also happen when they were queued and not processed after a while.
They can be cleaned up once they get this .err format without stopping any services.
How many managed clients you have so far ?
As you're using a dedicated SQL Server for your SEPM database, I supposed you have a large quantity of managed clients.
Ensure to optimize the communication settings for all your managed clients in consequence.
Increase the HeartBeat interval and switch to Pull mode as well.
If the Heartbeat Interval is too low it might be the reasons why bcp.exe and your SQL Server struggle to process of the SEP clients threads at time.
Kind regards,
A. Wesker