During some code size experimentation, I observed that ~0.25% of total code size was attributable to this problem. The bug predominantly affects CMP, but I saw a few instances where it affected the other arithmetic ops like ADD, AND, etc.
I opted for this simple localized fix after considering other options that add new infrastructure to be able to tell from the MCFixup itself whether it needs to be relaxed. Note that I removed the mc-x86-disable-arith-relaxation flag, as I think it should no longer be necessary.