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rgsproc crashed with an out-of-range error on betabinning. Is it a bug?

Yes, unfortunately it is. With the version of rgsproc in SAS v5.2, a bug prevents a user from using the parameter betabinning with the (formally allowed, not default) value nBins:

rgsproc nbetabins=3400 betabinning=nBins nxdispbins=170 xdispbinning=nBins

[...]

** rgsproc: error (ParamNotInRange), Value out of range for parameter 'betabinning'

although:

rgsproc -h
betabinning:string {nBins binSize}, default='binSize' (Specify number or size of beta bins)

For the time being, a possible workaround is to replace the two occurrences of nBins with Range in the $SAS_DIR/config/rgsproc.par file, and run rgsproc again. You can also download the fixed parameter file.