The issue seems to be that it is operating on partial buffers and then having to copy remainder of that 1M buffer around as part is consumed. Coreutils 0.11 solves that but 26.04 is at v0.8.
I've always used "bs=32k" because decades ago I did some testing and found that seemed to be large enough that it reduced the overhead while not being so large that it caused other problems, one of the most noticeable being scheduler issues where performance went into the toilet, especially on SD or USB thumb drives. Using this also seems to work better with rust coreutils dd.