This may have been fixed in 5.6 but the problem seems to be back in 6.3.76070
on Solaris 10 SPARC.  I have attached new files test1.e and test1.ecf.
If I compile with them and run, a precondition is violated:

-------------------------------------------------------------------------------
EV_ENVIRONMENT_IMP  set_application @2     application_not_already_set:
<0000000003E3E6D0>  (From EV_ENVIRONMENT_I)
                                           Precondition violated.        Fail
-------------------------------------------------------------------------------

If I disable all assertions and execute system, memory usage keeps growing,
apparently without bound.