I agree with sgtdraino and mardukra on the initiative question.
Comprehensive Rules 4.0 page 12 defines "initiative" as "At any time, either one side or the other side has initiative. The Free Peoples player has initiative while he has four or more cards in hand. Otherwise, the Shadow has initiative." Note the four cards must be "in hand".
13.8.07 CRD describes "void" as "When a non-site card is played, it enters the void (not in your hand, not in your discard pile, and not in play) until all of its effects have resolved". Note "not in your hand".
No more would seem to be needed to show the bug, but there is more:
CRD states for step 1 of 7 under "playing a card" that "1. Reveal The Card from your hand, and it enters the void (not in your hand, not in your discard pile, not in play). You cannot count The Card for initiative."
So in fact the CRD states expressly that initiative is lost at step 1 as soon as the card is revealed, not at any later step.
If that were not sufficient, CRD under "playing a card" step 5 states: "5. Respond to the playing of The Card (and to losing initiative if necessary)."
So it seems clear to me that
Hardy Garrison and
A Light in his Mind should trigger as soon as
One Good Turn Deserves Another is revealed from hand. It's a bug.