After some search. Here the post figure out the issue is caused by the length an XmlConfig "Id". The solution is to reduce the length of the id. Refined code as followed.
<!--<logField id="Date-UTC" logHeaderName="date" required="false" defaultValue="" />-->
<util:XmlConfig Id="AdvancedLogging_InterACT_LogDefinition_Date_UTC"
File="$(var.ApplicationHostConfigPath)"
Action="create"
Node="element"
ElementPath="/configuration/location[\[]@path='InterACT'[\]]/system.webServer/advancedLogging/server/logDefinitions/logDefinition[\[]@baseFileName='InterACT'[\]]/selectedFields"
Name="logField"
On="install"
Sequence="1006">
<util:XmlConfig Id="AdvancedLogging_InterACT_LogDefinition_Date_UTC_id"
File="$(var.ApplicationHostConfigPath)"
ElementId="AdvancedLogging_InterACT_LogDefinition_Date_UTC"
Name="id"
Value="Date-UTC"/>
<util:XmlConfig Id="AdvancedLogging_InterACT_LogDefinition_Date_UTC_logHeaderName"
File="$(var.ApplicationHostConfigPath)"
ElementId="AdvancedLogging_InterACT_LogDefinition_Date_UTC"
Name="logHeaderName"
Value="date"/>
<util:XmlConfig Id="AdvancedLogging_InterACT_LogDefinition_Date_UTC_required"
File="$(var.ApplicationHostConfigPath)"
ElementId="AdvancedLogging_InterACT_LogDefinition_Date_UTC"
Name="required"
Value="false"/>
<util:XmlConfig Id="AdvancedLogging_InterACT_LogDefinition_Date_UTC_defaultValue"
File="$(var.ApplicationHostConfigPath)"
ElementId="AdvancedLogging_InterACT_LogDefinition_Date_UTC"
Name="defaultValue"
Value="false"/>
</util:XmlConfig>