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This paper presents a theoretical analysis of two of the most impactful interventions in modern learning from demonstration in robotics and continuous control: the practice of *action-chunking* (predicting sequences of actions in open-loop) and *exploratory augmentation* of expert demonstrations. Though recent results show that learning from demonstration, also known as imitation learning (IL), can suffer errors that compound *exponentially* with task horizon in continuous settings, we demonstrate that action chunking and exploratory data collection circumvent exponential compounding errors in different regimes. Our results identify control-theoretic stability as the key mechanism underlying the benefits of these interventions. On the empirical side, we validate our predictions and the role of control-theoretic stability through experimentation on popular robot learning benchmarks. On the theoretical side, we demonstrate that the control-theoretic lens provides fine-grained insights into how compounding error arises, leading to tighter statistical guarantees on imitation learning error when these interventions are applied than previous techniques based on information-theoretic considerations alone.