You are confusing two cases. The director of LVC, Michael Hall, saw the Mantello production and till his death remained unrepentant, stating in interviews that he felt it should be acceptable for him to copy the work of other directors if he paid for rights to produce the script.
It was Gary Griffin who saw the Goodspeed/Broadway Most Happy Fella on tape at the library. He went multiple times as the log showed, which is why the library instituted the "Gary Griffin" rule that one could only view a tape once.
The Griffin case also was obvious since he rented the Broadway set and re-arranged the order of scenes in the same way that it was done in the Broadway production.