Hi Allennlowaton,
Are you sure that MP2 is in saturation?
There are two different scenarios: (a) with (b) without the voltage divider.
Considering that MP1 and MP2 are equal, in case (a) IMP1 = IMP2. But in (b), these currents are different because the voltage divider.
When IMP2 != IMP1, the VBG1 tends to be increased, when the PTAT voltage across resistor R1 is equal to =UT*ln(A*B). Where A is the ratio size of Q2/Q1, and B is the ratio of currents MP1/MP2.
If the PTAT voltage is higher in case (b), you have less drain-source voltage for MP2, what may cause it to work in linear operation.
Maybe, for corner slow (for PMOS transistor) (does not matter the corner of NMOS), MP2 with higher threshold voltage operates in linear region, since its source-gate voltage is higher for a same current. This is one possible explanation.
Regards.