This is really the bases of ETL processing.
Following is a standard pattern to load data from staging into one or more destination tables

1 - Load...

I would say its not so much the SQL but the VM and the Host config that matter.

How many CPU's does the Host have and how many are...

As I mentioned before OpenXML is an option. Didn't tried with larger contents but likely to work.

a tool that implements OpenXML and can be used from SSIS (in...

Steve does mention the constraint on the answer "Note, if the file is not empty, you cannot remove it.)

hum.. I've used this even with higher than 4k and never an issue.
from docs - For SQL Server 2014 (12.x) and earlier, allowed input values are limited to 8000 bytes.

this is one of the issues with using the ACE driver - and many more issues can be found if you processing same file layout with changing contents.

have a look at https://github.com/aleonard763/SSISFrameworkCommunityEdition
It kind of contains most of the details you need to implement your desired functionality - even a master package to control all others.

There are others - but one that always comes to mind is http://www.dba-oracle.com/

it is possible. but you haven't given enough details to give you a working solution.

assuming you have a list of pairs as per your input you would do...