I suppose that by reducing the vertical conductivity the residual conductivity of the potentially dry first layer will be lower by a factor of 10, and recharge may not be able to infiltrate. This leads to a pressure build-up at the surface, with periodic break-throughs once saturation is high enough to increase k to a degree that lets the water drain down. If you are using the default residual water level of 1 mm for the phreatic layer(s), I suggest to increase this reasonably to increase residual saturation, hence residual k in dry layers.