There are 2 issues here:

Issue #1: memory allocation.
An IO_CACHE that uses encryption uses a larger buffer (it needs space for the encrypted data,
decrypted data, IO_CACHE_CRYPT struct to describe encryption parameters etc).

Issue #2: IO_CACHE::seek_not_done
When IO_CACHE objects are cloned, they still share the file descriptor.
This means, operation on one IO_CACHE may change the file read position
which will confuse other IO_CACHEs using it.

The fix of these issues would be:
Allocate the buffer to also include the extra size needed for encryption.
Perform seek again after one IO_CACHE reads the file.