Just texted my uncle who used to fly the 732. Mach .86 is much too fast for the 737 (or at least the 732). His company (Nolinor) usually had pilots cruise at around Mach .8 (usually less) or so.
Not sure why you think that’s “insane” because short haul aircraft aren’t fast…
You can also look thru PDF’s or even Wiki for cruising speeds, and if you deem that “fake news” then I’m not sure what can make you not believe that a cruising speed of .86 is a reasonable one.
If you just search it up, you’ll see a lot of information on this. The cruising speed of the 737 is supposed to be 0.789 Mach, which is in between 0.78 and 0.79.
0.78 is not slow, it’s the cruising speed of most narrowbody commercial airliners, including the A320 family. Some do go faster than that, like some flights to Hawaii from the mainland, like Mach 0.80 but 0.86 is not the cruising speed even for a 777. Most short haul aircraft aren’t designed to go much quicker than 0.82, seeing as even 0.78 Mach can get you to ground speed of 550 knots.
Also, I have a friend who flies the 757 and 767 at Delta, and he used to fly the 737, and he said that the cruise of the 75 and 73 are very similar, and he cruised at 0.75-0.79 in the 757, so I’d say the same for the 737.