It’s totally fine to bulk replace some sensitive things like specifically sensitive information with “replace all” as long as it doesn’t break parsing which happens with inconsistency. Like if you have a server named "Lewis-Hamiltons-Dns-sequence“ maybe bulk rename that so is still clear “customer-1112221-appdata”.
But try to differentiate ‘am I ashamed’ or ‘this is sensitive and leaking it would cause either a PII exfiltration risk or security risk’ since only one of these is legitimate.
Note, if I can find that information with dns lookup, and dns scraping, that’s not sensitive. If you’re my customer and you’re hiding your name, that I already invoice, that’s probably only making me suspicious if those logs are even yours.