I found a solution after digging into the module using Kotor Tool. The issue is with the Mandalorian Scouts on the level with the appearance Sithghost5, which was causing the game to crash every time you got near them.
This is how to fix the issue:
1. Extract bos_msp3.mod to a folder using Kotor Tool's 'Extract entire ERF file' button.
2. Change the appearance in mzp_mand11.utc file in the bos_msp3.mod module to Alien_Mandalorian_01, then replacing the file in the folder from step 1 (double click the file in Kotor Tool).
3. Open Kotor Tool's ERF/MOD Builder from Tools.
4. Click Add Dir... and navigate to folder from step 1.
4. Browse Output file name to folder from step 1 then choose name as bos_msp3.mod.
5. Select Output file type as MOD.
6. Click on Build MOD. (If Build MOD is grayed out, try changing Output file type to something then back to MOD).
7. Navigate to swkotor install directory.
8. Make a backup of bos_msp3.mod file in the modules folder, then replace that file with the one created in step 6.
Or, you can download this file, but I put the instructions in case this link ever dies. https://www.mediafire.com/?ybsos6ubsvnzxpo