I think I found the issue with this circuit. When the voltage source starts to apply a non-zero voltage, it must also supply current. There is a current variable associated with the voltage source that is part of the solution vector. As soon as the voltage source turns on the current that needs to be supplied is very large (1.25e4 Amps!). Given the tolerance set on the problem the solvers can't solve for a variable oder 1.23e4 to an accuracy of 1e-6.
So, there are two ways to help the solver here:
1. Tell the time integrator to not apply the same accuracy limits to currents that is does to voltages with the option:
.options timeint maskivars=1
2. Use the default time integration abstol and retool. By using ".options timeint reltol=1e-06 abstol=1e-06" you are putting very tight tolerances on the retol and that will cause problems in this simulation.
Good Luck,
Rich