Ok, I will look into it tonight. I never really used MC, preferring either the command line or a graphical app like rox or emelfm2, so my testing of it was limited.
I am away from TC today, but my hunch is that I may need to create a wrapper for the bzip2 binaries in /apps/mc/localbin, or preferably to just re build bzip2 as static to keep it simpler without needing a wrapper for every one of it's invocations.