NLog - File Rotation - Sequence Issue - nlog

Question

I am using Nlog for logs and rotating file on daily basis. Log files are read and processed further by another system to move to Splunk.
Here I am looking to find out what steps nlog takes to rotate file because it is failing my integration with other systems. It works fine with other log framework like log4net/logback. If that's case, I may need to switch to other framework.
Ideally steps should be - Approach 1
1. Open file - abc.txt
2. add log line 1, log line 2.. log line n.
3. 12.00 AM - file rotation - Rename file abc.txt => 2020-05-13 abc.txt
4. create new file - abc.txt 5. add log line a1, log line a2.. log line an.
Another approach may be - Approach 2
1. open file - abc.txt
2. add log line 1, log line 2.. log line n.
3. 12.00 AM - file rotation - create new file 2020-05-13 abc.txt
4. move contents from abc.txt to new file 2020-05-13 abc.txt
5. Update file offset/pointer to move to new location i.e. start of the file (as contents are removed from this file)
6. add log line a1, log line a2.. log line an - at the begining location (offset/file pointer)
Can anybody please confirm which approach or sequence of steps are exactly performed by Nlog for file rotation.
[UPDATES]
Below is how my config looks like-
<nlog xmlns="http://www.nlog-project.org/schemas/NLog.xsd" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance">
<variable name="logDir" value="C:\logs">
<targets>
<target name="logFile" xsi:type="File" fileName="${logDir}\API_${machinename}.json"
archiveFileName="${logDir}\{#}_API_${machinename}.json" archiveNumbering="Date"
archiveDateFormat="yyyy-MM-dd" archiveEvery="Day">
<layout xsi:type="JsonLayout" includeAllProperties="true">
<attribute name="time" layout="${date:format=yyyy-MM-ddTHH\:mm\:ss.fffzzz}"/>
<attribute name="level" layout="${level:upperCase=true}"/>
<attribute name="message" layout="${message}"/>
<attribute name="exception" layout="${exception:format=#}"/>
</layout>
</target>
</targets>
<rules>
<logger name="*" minlevel="Debug" writeTo="logFile" />
</rules>
</nlog>