Is your only concern that it takes longer to run? Or is it that your "AG1" App Group didn't expire anything? All you've said is that it was the "last" item returned in the hitlist, not that AG1 didn't get expired.
If it's the fact that it runs longer, that IS an issue with CMOD 8.5, as the new (and more secure) hashing method can slow down things like load processing. Otherwise, I'm not exactly sure where the problem is, or what's behaving differently between versions.
-JD.