I would guess that your steplib consists of multiple data sets and that
they are not all authorized which means that your steplib is not authorized
(or that the one data set that is there is not, despite your thought,
APF-authorized.) If you have a dump, you can look at the DCB's DEB to see
if bit DEBAPFIN is on. That is the final arbiter of whether or not your
steplib is authorized.
.
Then, assuming that "A" was linkedited with AC=1, "A" gets control
APF-authorized, and cannot load from an unauthorized steplib and thus finds
"B" in the (authorized) LNKLST rather than "B'" in the unauthorized
steplib.

I am also presuming that "B" and "B'" are not aliases of A.

By the way, the default for LSEARCH is LSEARCH=NO.

Peter Relson
z/OS Core Technology Design
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