Unable to create payroll element via batch process after 26C was applied to pod

Summary:

When performing element creation (Post 26C) our batch loads are holding to the thread count on creation.  Note: this behavior happens regardless if the team uses the default of 8 or modifies it to 10)  
Behavior:  When the systems runs into an issue on creation of the objects it seems to go into a 'Retry' status and then it will duplicate the entire object group again ... and it will error out because it already has certain objects created.  
We cannot submit anything larger than 8 elements to load at a time and at that we still have errors which blocks the remainder of the threads from working.