Another player claims to be having the same issue on the forum. They posted in the thread I started, so this might not just be limited to me.

Yes, they are in a single chain one on top of the other.
It appears the server is completely ignoring the setting. It should have stopped me several times from docking then. I say that because you are correct that is in the config file.
MAX_CHAIN_DOCKING = 25 //maximal deepness of docking chains (may cause glitches depending on OS (path and filename length) at high numbers)

I assume those entities are in a single long chain, right?

It still exists just checked in latest versions.
http://i.imgur.com/vXu9N1d.png
The stack you see on the left is what i created in game 128 docked entities.
The right was what came of trying to admin spawn a copy of it. 108
Figured that was faster than building an entire station and entities over again.
The system still thinks there should be docked parts on it and tries to transfer you up to it if you use the arrow keys. This results in a Long pointer null exception error.

This is no longer an issue. (v0.199.535a)

Bug occurred again during a server autosave while attempting to use the pulse/cannon system. Pulse systems on that ship no longer have any effect other than purely visual (no block damage applied). Removing the damage pulse computer and re-slaving it to the modules has no effect, either.

In T2361#99429, @lancake wrote:

-Validated- & -Confirmed-
Yeah for AI it's quite a concern. Easiest solution to this would be to always have power auxiliary on as default when placed down.
I don't immediately see an issue with doing this. If there is one, please leave a comment here explaining why.

Please see attached.

Glad to hear that,
thank you for confirming it has already been fixed.

I have just tested it, and it teleports to the correct position promptly. When I reported this I believe the rail entity was stuck and teleported to the original position, but it seems to be okay now.

-Confirmed-

Yeah for AI it's quite a concern. Easiest solution to this would be to always have power auxiliary on as default when placed down.
I don't immediately see an issue with doing this. If there is one, please leave a comment here explaining why.

Seems to be only affecting clients as the link still works fine (as said in description).
This also applies for logic linked to displays.

Hey there, the bug is still present in 199.535, but it's not logic linked, it's when a drone is docked on the rail which is linked to the storage pulling module (tested it with a drone carrier), the link randomly vanished or totally I haven't found any clues for the reason why that is still occuring.

We have created a blueprint to show you the bug, the bug still occurs when we fill arround 100 displays and each display have a different text. If all the displays have the exact same text there is no a massive fps drop.