Timeout when executing MERGE-statement in SQL Server 2016 in simple recovery model

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After migrating from SQL Server 2014 to SQL Server 2016, we have been experiencing query timeouts using MERGE-statements on some datasets.

Tested versions: WORKING: SQL Server 2014 Enterprise (64-bit) (12.0.5532.0) TIMEOUTS: SQL Server 2016 Enterprise (64-bit) (13.0.4001.0) and SQL Server 2016 Enterprise (64-bit) (13.0.1601.5)

Code to reproduce the timeout error: enter link description here

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