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So, sequence went like this:
- Played underworld breach.
- Cast Iteration from graveyard, exiling 3 cards for escape cost, including prismari command.
- Chose cards for iteration, exiling a mountain.
And then iteration let me cast all 4 cards exiled that turn, so including those used for escape cost. I successfully cast prismari command, which arguably won me the game, since it gave me enough mana next turn for my 25 damage crackle combo.
So, is it a bug? Iteration just says "exiled" not "exiled with iteration", but it does seem implied. Rulings on EI don't really mention anything, hence it seems like an oversight.
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