I need to perform data transformation on logs during the ingestion phase, which capability provides...

Log Processing rules in Dynatrace allow transformation of log data during the ingestion phase.

They enable:

Parsing and structuring log data

Masking sensitive information

Enriching logs with additional attributes

Filtering and modifying log content before storage

Other options are unrelated:

Anomaly detection rules are for alerting

Log events are outputs, not transformation tools

Custom process monitoring rules and service detection rules are unrelated to logs