Well here's an update... Sjaak II source code is NOT easy to navigate or
understand - not by any stretch of the imagination (as would be expected,
it is advanced chess AI after all). I don't know what possessed me to
think it would be easy, I guess I just saw some methods and functions, and
thought to myself "oh I know about those" :-) I have to say I feel a little
bit embarrassed!
Also you could be right about your 2 step king move idea. It could very
possibly be more principled than my luft castling. But I only added the
possibility of some kind of special castling rules in the notes, as
tentative suggestions. And I'm resigned to the fact that I will probably
never find out what is the best solution. I'm letting go of Latte Chess
now - anyone is free to do what they want with it - for what it is worth
(if anything). Thank you for your patience.