LogScale supports auto-grouping of tags using this configuration variable and TAG_HASHING_BUCKETS.

LogScale checks the number of distinct values for each key in each tag combination against MAX_DISTINCT_TAG_VALUES at regular intervals. If this threshold is exceeded, a new grouping rule is added with the modulus set to the value set in TAG_HASHING_BUCKETS, but only if there is no rule for that tag key.

See TAG_HASHING_BUCKETS here and the Cluster Management API documentation page for more information.