I'm not sure if anyone else has had this happen; but the other day I lit up a four ship convoy. I took out an A&B class destroyer, a medium cargo ship, a large merchant ablaze and fire just broke out on a passenger / cargo vessel.
I was waiting on the large merchant to sink and was getting ready to finish off the passenger vessel when I got a CTD.
I went back into JSGME and removed the damage from fires mod and it worked OK after that. I haven't downloaded v1.4 yet. All I'm running are GWX, Torpedo damage final v2.0, life boats and debris, and damage caused by fires v1.2.