Are you sure about that? I've never seen it do this.
Yes I am sure.
In general, if the ramlib stack is not patched to be larger, it is not safe to call OpenLibrary for disk based libs (that is, for libs that are not already in memory. that is non-KS-ROM libs) in LIB_Init. These calls must be made in LIB_Open.
Anyway, the crash can be worked around by loading the sublibs manually before opening the library in question.
Also the open might actually work, depending on pure luck (due data allocated before the stack being not critical for trashing) or OpenLibrary patches not being installed (each patch usually adds to stack usage).