I found this to be an "unofficial" ISP problem. I use WOW/Knology and I read of this happening with Comcast (surprise! surprise!). Evidently, the iTunes Match transfer was using too much bandwidth and WOW clamped down on this.
My iTunes Match was in an endless loop. Following all the instructions that I found about this in the support area did not resolved the issue. I did find two answers claiming to resolve this issue. Both mentioned "port throttling"--that is, limiting the upload speed on a specific port (https--443) or a variety of ports. I tried the easiest and throttled port 433 to 128K max and reran iTunes Match. It complete parts 1 and 2 easily. iTunes Match is working on part 3 currently. Slowly but surely--has has been working steadily for 16-18 hours now (my iTunes library is ~85GB). (The transfer listed each file as it is being transferred. It is interesting to see the transfer penalty of never throwing "anything" away.)
There are several port-throttling programs for the Mac. " Entonnoir " was the one recommended and the one I am using. It is a free download --the publisher does ask for a donation.