The purpose of this study is to identify the integrity challenges encountered by buried pipeline steels, specifically to address Circumferential Near-Neutral pH Corrosion Fatigue (C-NNpH-CF). Damage to the pipeline’s protective coating and corrosion conditions increase the risk of service failures caused by C-NNpH-CF. (Note that this mechanism has previously been termed near-neutral pH stress corrosion cracking.) Unlike axial cracking, circumferential cracking is primarily influenced by residual stress from pipeline bending, geohazards, and girth welds. External corrosion pits often lead to dormant cracks, with growth ceasing around 1 mm depth due to reduced dissolution rates. Investigating the impact of bending residual stress (an appropriate source of axial residual stress) and cyclic loading (simulated pipeline pressure fluctuation), the study employs the digital image correlation (DIC) method for stress distribution analysis. Factors like applied loading, initial notch depth, and bending conditions influence crack initiation and recovery from the dormancy stage by affecting stress distribution, stress cells, and stress concentration. Cross-sectional and fractographic images reveal time/stress-dependent mechanisms governing crack initiation, including dissolution rate and hydrogen-enhanced corrosion fatigue. The study emphasizes the role of various residual stress types and their interactions with axial cyclic loading in determining the threshold conditions for crack initiation.