There is no error that is produced (i checked the console as well), the sprite priority no longer functions when having battlers overlap.
With the plugin i posted above, you can dictate the battlers sprite priority. It is functioning correctly in the left frame - battler on the left should have layer priority (JM_EarthboundBackgrounds disabled) and in the right frame ( with JM_EarthboundBackgrounds enabled), it no longer correctly takes sprite priority.