I'm running normal 7.0.5, but I don't know what LayeredFS is, so I'm guessing I probably don't have it. It doesn't seem to be an issue with screen fades; it just hard-locks whenever I go into the cheat menu and attempt to exit it, and also at a very specific point if I leave the title screen on for too long (right when Lunala's flying up from the bottom-right).
I guess no matter what I probably have to wait for an update to the plugin, huh? :V
LayeredFS is romfs redirection, files being read at luma/titles/titleid of your game/romfs such as music ones, trainers, wild encounters, that stuff. It seems you don't have that, so not sure the issue. What do the crashes look like? Sometimes the bottom screen menu doesn't appear when first activating the plugin with Select, you'd have to press A to make it appear.