It’s a bit old, but Chaz on Youtube has a great video explaining some weird facts about Earthbound, including mysterious crashes, when the game registers the effects of statuses like Sunstroke, and why there’s a small number of places in the game where you can find an early enemy, the Mole Playing Rough, in regions where you usually find much stronger enemies. It’s ten minutes long:
Here’s the gist:
Earthbound maintains a flag that the video calls the Overworld Status Supression Flag. If this flag is on then your characters can’t get a number of statuses like Sunstroke, or take environmental damage. If this flag is on, though, and your party loses to a scripted (not random) battle, then a bug is triggered that’s popularly called the Game Over Glitch: the battle loss cutscene music plays, but the screen turns black and nothing appears to work. In fact, the game has not crashed: entering the Town Map screen, or feeling around for and entering a door, will display graphics again, although glitched out. The Game Over Glitch is best known for happening if the player loses to one of the Shattered Man fights in the Museum after the game has been won: during the ending, the Overworld Status Supression Flag is set on permanently, so getting into any scripted fight and losing will result in the glitch happening.
As it turns out, random encounters disable the flag. So there is a hard-to-avoid Mole Playing Rough at the entrances to areas with environmental damage, to make sure the flag is turned off. But the mole is just hard to avoid, not impossible, so if you can avoid it, and all other random enemies of course, and then reach a place with a scripted fight, then lose to it, the glitch will still happen.
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