Package state not re-intialized on raise_application_error
The response from Oracle is that this is not really a bug because the application is catching the 4068 and handling it, thereby not allowing the normal resolution of the error to occur. Their explanation doesn't seem adequate to me because if the package throws an ORA-01476-Divide By Zero (for example) doing a raise_application_error does not effect whether the ORA-01476 is included in the stack or not.