This hack is fantastic!
I literally just tried to run Xtreme 2 yesterday and realized that it did not have a dash button just like in Xtreme 1.
It had some decent workarounds, but it's just not the same as having a proper Dash button. However, I've already run into a pretty major bug.
You mention that you can pause in places you shouldn't but it doesn't affect dialog, and that seems to be true. However, I just ran into a softlock in Launch Octopus's stage by pausing at the last miniboss before opening the boss door. The door won't open now!
I'm not sure if this would affect any door of this type, but I definitely can't get through here no matter what I do.
Otherwise, this is great, I'm so glad you made this.