Yes, I did reproduce it (to a much smaller degree, but it's just a 48c/96t machine). But it's an absurd workload in an insane configuration. Not using huge pages hurts way more than the regression due to PREEMPT_LAZY does.
With what we know so far, I expect that there are just about no real world workloads that aren't already completely falling over that will be affected.
So why does it happen only with hugepages? Is the extra overhead / TLB pressure enough to trigger the issue in some way? Of is it because the regular pages get swapped out (which hugepages can't be)?