This should not be a problem.
When a step fails, Xyce scales back the time step and tries to retake the step. During the course of transient simulation it will sometimes be the case that the code is trying to take too large a time step and needs to shorten it. It is generally nothing to be concerned about.
When the number of failed steps starts to be very large compared to the number of successful steps, then you might consider that something is fishy.
Generally, you can just look at the summary that's printed at the end to get enough info without needing to the verbose output. Your older circuit was so pathological, though, that more information was required just to see what was happening.