I am setting up universal forwarders to run using service account and in Splunk documentations
https://docs.splunk.com/Documentation/Splunk/8.0.4/Installation/PrepareyourWindowsnetworkforaSplunki...
the GPO section states that we need to give the account domain admin which doesnt make sense
Splunk Forwarder can be run with normal domain account. Admin privileges are not necessary. Incase if you are collecting windows event logs, provide access to the domain account through GPO policies.
The URL you cited explains the reason: "The low-level access requirements for Splunk Enterprise operations necessitate these changes if you want to run Splunk Enterprise as a user other than the Local System user."
That raises the question, why are you running universal forwarders under a domain account instead of a local account?