As far as I know, it is not LibRaw matter. LibRaw just extracts demosaiced pixel data, metadata and preview thumbnail image from RAW.
https://www.libraw.org/aboutThe lens corrections are Raw converter's job. Camera RAW, CaptureOne, DxO PhotoLab... etc. do that, but SNS-HDR doesn't, as I already said.
The reason why this issue happens in only wide lens is that normal and tele lenses have almost no distortion originally.
Your issue is the same with my MFT camera, Panasonic G-85 and wide lens. So, my workflow/workaround is... First, process the RAW with SNS-HDR to TIFF file. And second, correct its chromatic aberration and distortion using Lightroom. Maybe there is some IQ degradation, but no choice.