The stack trace looks normal - this is the normal execution flow of RadScriptManager. On the other hand we have not encountered such memory problems before so we cannot look for a specific pattern that could possibly cause the exception.
As a side note, neither RadAjaxManager nor RadScriptManager are manipulating the <script> elements in the <head> of the page.
One thing that *might* be causing this is the name of the script resource, which hash is being calculated.
Do you have some embedded script references that you add to the RSM on the page, which are in an external assembly (not in Telerik.Web.UI)?
All the best,
the Telerik team
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