Further update:
In version 8.6 we enhanced the code to allow for linking of dofs and this complicated the determination of which equations belong to which partition (since we partition by node and not equation). The routine ueqnb1( ) in version 8.6 is the cause of the slowdown that you are seeing. In version 8.5, on your problem, this set only takes 0.01 seconds on my computer but it requires 4.0+ seconds with version 8.6 --- so a slowdown of 400x.
With the problem identified, we'll see if the algorithm can be sped up.