i might have a solution to this problem.
my service host local system was eating heaps of data and memory.
i tried all the solutions mentioned in this thread & some from other forums on the same topic: disabling bits, hitting end task on service host, virus scan, sfc/scannow, clean boot, turning it off and on, a factory reset!!!, then upgrading from windows 8 to 8.1.
**all with no success**
**however**
after doing the 8 to 8.1 upgrade, i then downloaded & installed all the other windows updates
now service host local system is not using any data and a fraction of the previous memory use.
i suspect that the updates download via service host local system. so if this gets interrupted, the download has to start all over again.
windows updates can be found:
win+c (or mouse to right corner of screen) > settings > change pc settings (bottom option) > update and recovery > windows update > check now
the updates are set to download automatically by default, but this can be changed (eg. if you have a limited data plan or computer is running too slow when updates download):
win+c (or mouse to right corner of screen) > settings > change pc settings (bottom option) > update and recovery > windows update > check how updates get installed > important updates drop down menu > check for updates but let me choose whether to download an install them.
obviously, go back to windows update every so often & manually download the updates.