Yes! that version of LHA works. However its slow as hell (like a regular 7mhz 68000) Whats weird is Dopus 4 on both versions will extract the lha archive but then it crashes the machine. So i've been using shell for unarcing.
Apollo-team is working hard with the Phoenix-Core. It has already succeeded boot with KS1.3 to CLI window. However, I'm not sure will there be the full 020-support. In the meantime I recommend to use TG68.C-core version 0.2 (no cache - MC68000) and make sure that you have the latest public release of the Directory Opus 4.12:
http://dopus.free.fr/files/CU_DirectoryOpus.zip