MeshSplit bad mesh resolution?

I used the MeshSplit tool on 2 good topographic meshes. 1 resulted in a good mesh and the other resulted in a bad mesh. Both resulting meshes have many naked edges but no degenerate faces, n-gons, short edges, non manifold edges, duplicate faces, different directions, or disjoint pieces, or unused vertices. What’s the issue? How can I resolve it?

split mesh.3dm (774.7 KB)