Yes - but when you consider some of the odd abrupt modulations in the original song (i.e. the 1973 version), with Fredrika's (and Madame Armfeldt's) C minor suddenly going to E major for Desiree, etc - well, we're probably both very used to that because we've heard it that way a lot. Equally sudden and musically non-prepped is the jump from the Liebeslieders' Ab to Desiree's C major for the last section of the song. I don't find any of the modulations in the Dench version any less abrupt or strange. But the arrangement is less familiar, so you may just not be used to it in the same way.
Your ear may tell you that the original arrangement isn't "jarring" in the same way you feel the newer one is. But on paper, the modulations are just as sudden and unpredictable. :-)