Thank you to MySQL for fixing this quickly. I reported the bug in January of 2023. I have been aware of the performance problem for years, but didn't spend time debugging it until this year. I assume this problem was limited to InnoDB because I did not see problems with MyRocks.
The chart below shows relative QPS which is (QPS for MySQL 8.0.35) / (QPS for MySQL 8.0.34). When the value is larger than 1.0 then MySQL 8.0.35 is faster than 8.0.34. And below the relative QPS is almost 4.0 on the read+write benchmark steps: q100, q500, q1000.
The Insert Benchmark is explained here.