Data Loader inserts or upserts cause Process Builder errors

When using Salesforce Data Loader to perform bulk Insert or Upsert operations, a Process Builder process triggered on the affected object may fail if the batch size is too large. This occurs because Process Builder has limitations in handling high-volume bulk operations simultaneously. When a batch is too large, Process Builder cannot complete its triggered actions for all records within the allowed time, resulting in a flow trigger failure error.
Data Loader error file message:

"The record couldn't be saved because it failed to trigger a flow. A flow trigger failed to execute the flow with version ID 301j00000001X2z. Contact your administrator for help."

System Administrator flow error email example:

"An error occurred at element myRule_1_A1 (FlowRecordUpdate). UPDATE --- UPDATE FAILED --- ERRORS: (ALL_OR_NONE_OPERATION_ROLLED_BACK) Record rolled back because not all records were valid and the request was using AllOrNone header --- for SFDC record with ID: 001j0000002Xy1ZAAS"