I agree the stated DCB attributes of the alleged load library appear to be questionable, but ...
Program fetch (the actual piece of z/OS that loads modules into storage) uses what is actually in the load module and completely ignores the stated DCB attributes of the load library. Now if a program like the Binder tries to read the load module it will use the stated DCB attributes, and possibly fail if it encounters something outside of these attributes.
The indicative dump seems to show a problem at the start of the program.
L 11,... (the 3rd and 4th bytes of the instruction were not printed)
The failing instruction is the L 3,16(,3) instruction.
Now, I don't know anything about the Rexx compiler, but I'd see if there is something you have to do for a program entered directly from the operating system, like your program. Reg 0 does not have a defined value in this situation, so the LR 3,0 instruction is not doing anything that is useful, which is why the program is failing.
Now you can ask, "Why do you say it is at the start of the program?" That's a fair question.
- The load module offset is shown as X'0052', which is very low.
- An instruction like BALR 12,0 is often used to get an address into a register for program code addressability near the beginning of a program.