Let me first respond to the alert loop: This happens if Little Snitch cannot determine the host name for the remote computer uniquely. If there are multiple names and applying rules to all these names does not yield the same result (allow or deny), Little Snitch shows an alert for the IP address.
Not there are two questions: (1) Why has it not been able to determine the host name from TLS SNI headers? And (2) when you create an IP address based rule, why does it not match?
The answer to (1) may be a behavior of Chrome, maybe it does not send any headers when it knows that the network is down. This is something we would have to investigate. I don't have a good answer for (2), though. The rule you created may have lower precedence than other rules which are not unique. This could result in the type of alert loop you described.
We have done some improvements in 4.1 in this respect. If no unique rule can be determined and the set of matching rules have contradicting actions, we now show the alert. The current 4.1.3 nightly logs these events into the LS Daemon log, if you want to analyze this further.
Regarding memory usage: If this happens during sleep or screen locker, it's very likely related to this other issue where Little Snitch Agent hangs in a graphics library call every two minutes. I suspect a graphics driver problem on your machine.
We better go back to the Agent hang problem because it occurs more frequently and should therefore be easier to watch. This may even be a bug in Apple's drivers with no easy way for us to fix it. Do you experience hangs in other apps, especially after wake from sleep?