What are the possible condition might occur for daemon to hog the cpu and makes the system very slow or moved to non-responsive state?
Daemons have few threads as well.
A tiny fraction of reasons include:
These list items are not exclusive to each other. We really can't tell something more specific without more information.
a) a bug
b) a large job
Are you thinking of a particular daemon?
Slow, non-responsive systems are more normally caused by I/O contention than CPU usage, by the way. Install iotop
to see what's hogging your disk.
You can also nice
or renice
programs to free up the system a bit.