self and yourself: are not the same. The simple fact one of them is bold and blue and the other is thin and pink should say that well enough.
self has no colon, for it is not a selector (object method or property), but a keyword referring to the object this method is all about (theBackground I guess).
yourself: is a method implemented by the Obj class, which all other classes inherit from. All it does is return a reference/pointer/whatchamacallit to whatever object you called yourself: on.
So first it init-ializes theBust, then returns a reference to said bust to use as an argument for Talker::init, which indeed wants a bust, prop (eyes), and synchronized prop (mouth) in that order.
Therefore, if you replace it with self like you considered, you'll get theBackground where you're supposed to have theBust, theEyes, and theMouth.
The problem then becomes why does SCI Companion's compiler not realize these portrait elements have a yourself method? They should inherit that down the chain.
I mean, you could rewrite it, initialize the parts before calling super init, and then just do (super init: theBust theEyes theMouth local0 0 0 (if local8 0 else 1) talkerObject) but that won't solve the real puzzle.