Apparently, once a Streets of Rage 3 ROM is at least about 3.24 MB in file size, Pancake 3 decreases the values of all art addresses beyond 33FFFF by 200000 after I select the character again. For example, art address 3405D8 becomes 1405D8. Why this is an issue with Pancake 3 but not Pancake 2, I have no idea. There's no circumvention that I know of, aside from maybe generating sprites over old addresses.