sorry i cant provide any on-point advice. because this looks like some compatibility issue.
I think you can try “process explorer” to sort out which service is causing the trouble. just download proc exp from sysinternals and launch it. dblclick on the process (in this case services.exe) and switch to thread tab in the popped up window. look at the cpu usage and the correspondent module name. I think this will help. If you still cant figure out which service the problematic thread is ssociated to, just click on the service tab and use your imagination :D.
I hope this can help you narrow down the problem.
I had a similar problem: CPU running at close to 50% and everything very slow to respond. Opened Process Explorer and 1 of the svchost.exe was high (note: don’t sort by CPU usage as Idle and the culprit keep swapping places - makes it hard to get the mouse on to it!).
When the pointer is over the process it’ll tell you what’s running from it; in my case it was the DNS client (dnscache) service. I have a Hosts file of just over 4MB and the service was trying to resolve it! It should have been Disabled, but I’d uninstalled Treewalk and that had turned it on.
This is exactly what I’m experiencing. I’ve only noticed this occuring when CIS is doing it’s automatic update (after logon). Once CIS has finished, service.exe will reduce in size back to normal. Not sure if it’s possible to stop CIS from updating automatically (haven’t looked myself) but I’ve started noticing this about a week back.