What explains the observation that galaxy clustering is stronger at higher redshifts, which is an apparent reversal of the trend out to about z ~ 1?

It is difficult to measure peculiar velocities
Rich clusters have more galaxies than poor clusters
Density contrast seems to grows in time
At higher redshifts, galaxies become very biased tracers of mass

Prof Djorgovski explains this in Module 10.2, starting at about 09:30 Try learning