I think I found it and if I'm right we will both be kicking ourselves. The question was asked:
"So what is the cause for the reduction in wing tip vortex strength?"
We both quickly jumped to induced drag formulas as they are related to the vortex strength, but we didn't look at how vortex strength is calculated. Which, in my fumbling through a book far more advanced than I'm comfortable interpreting, I stumbled upon the bound vortex.

The important discovery was in the derivation of lift coefficient shown below.
The text discusses Helmholts theorem for vortex arrangement and the term horseshoe vertex. A term it seems implies the configuration of the vortex arrangement Helmholts theorized.
Anyways, in the next section (p51) vortex width is determined. During this process they derive lift coefficient from 3 different equations into a final equation. It is assumed is unswept, constant chord wing in incompressible flow, and experiencing additional lift due to constant AOA. To avoid clutter, only two are shown:
Cl = L / (QS) = (2T / V) (n/c) where:
Cl = Coefficient of lift
L = Lift
Q = Dynamic pressure
S = Reference wing area
T = Vortex strength
V = Velocity
n = Wing lateral coordinate y (dimensionless)
c = Reference wing chord
Anyways, what you told me here was that the induced drag curve comes from induced drag coefficient and induced drag coefficient is calculated with lift coefficient. Now I found that lift coefficient has a factor of velocity. It is an inverse relationship, i.e. lift coefficient will go up when velocity goes down. Since induced drag coefficient and lift coefficient are directly proportional, if lift coefficient goes up as a result of decreased velocity, then induced drag coefficient will also go up.
Reference: Introduction to Aircraft Flight Dynamics - Louis V. Schmidt
Pages 49 - 52