Real Bout Garou Densetsu (Japan) and Samurai Spirits - Amakusa Kourin (Japan) show "DRAM1 read beyond its boundary!" messages, if run with 1MB RAM cart. RBGD becomes slow and barely playable, with 4MB it's fine. But on a real console these 2 and King of Fighters '96, The (Japan) don't work properly with 4MB cart, they specially need 1MB one (with 4MB cart sprites either disappear or are replaced with grey blocks).
this has been now fixed in svn rev. 32466: the dram is mirrored as the games expects.
fwiw, I think the appearance of grey blocks vs transparent ones, depends on the initialization of the DRAM blocks, since on debug builds I often have them matching the image you posted