confd is still reading data from etcd using the v2 datastore, so it's calling
https://{host}:4001/v2/keys/{key path}?watch=true
it appears that if we change multiple keys in rapid sequence (this happens when confctl changes multiple records in one command), confd will only see the first one changing and miss the next updates.
This means, amongst other things, that we could miss critical changes to the discovery dns, or even to the varnish backends.
As a stopgap solution I propose we switch all instances from using watch to have a polling interval of 3 seconds, while we figure out what's wrong.