Given that it had a limited trial run in Chicago, I'm not surprised I haven't heard of this version. Midways home base was around Chicago, was it not? Midway would test all sorts of things in the arcades that would not get wide public releases. So is a neat addition.
It was yes! There's an old story that when MK2 was in arcades testing, there was this weird Kung Lao bug at first and Ed would often sneak into arcades and watch player reactions and stuff and then he noticed it. When 2 players were playing, the Kung Lao teleport would be fine, however whenever the AI did it, the game would crash...
"I was watching somebody play the single-player game. Kung Lao has a move where he teleports and comes up on the other side," explained Boon. "Every time the CPU did it, the game would crash. Every time."
What's odd is that the bug would only occur when the AI controlled Kung Lao. Boon noticed that if a human player performed Kung Lao's teleport, everything would continue to work just fine.
Still, it seems that Boon was quite conscious of the bug's existence. Apparently he was even considering going back to his work place to implement a quick fix. Ideally, he would then implement the fix at the test site.
However, the crowd never seemed to die down. This ended up working to Boon's advantage though as this meant there wasn't an opportunity for the AI to get a turn.
"I go, 'Oh my god, a person can teleport and it won't crash, but if the AI does it, it will every time.' I'm sweating bullets and thinking, 'I have to go back to work, find the bug, fix it, burn a new set of ROMs, drive back to the arcade, and put it in,'" explained Boon. "It'll be midnight by the time I get back. With the huge crowd there I thought I would wait a bit until it settles down since everyone would be playing against each other and the game wouldn't crash."
This never happened. Mortal Kombat 2 was apparently too popular for a human vs. CPU encounter.
"It was like that until 2 a.m. when they closed the arcade. It didn't have one game played with one person against the computer," said Boon. "It was always two players. I just kept waiting and waiting, but I didn't have to fix it. I went back after leaving the arcade and fixed it."
From
https://www.eventhubs.com/news/2022/feb/26/ed-boon-mk2-bug-test/