Every use of dump transaction...with no_log is considered an error and is recorded in the server’s error log.
If you have created your databases with log segments on a separate device from data segments, written a last-chance threshold procedure that dumps your transaction log often enough, and allocated enough space to your log and database, you should not have to use this option.
However, some situations can still cause the transaction log to become too full, even with frequent log dumps. The dump transaction command truncates the log by removing all pages from the beginning of the log, up to the page preceding the page that contains an uncommitted transaction record (known as the oldest active transaction). The longer this active transaction remains uncommitted, the less space is available in the transaction log, since dump transaction cannot truncate additional pages.
This can happen when applications with very long transactions modify tables in a database with a small transaction log, which indicates you should increase the size of the log. It also occurs when transactions remain uncommitted for long periods of time, such as when an implicit begin transaction uses the chained transaction mode, or when a user forgets to complete the transaction. You can determine the oldest active transaction in each database by querying the syslogshold system table.