This article deals with the Hadamard instability of the so-called$\unicode[STIX]{x1D707}(I)$model of dense rapidly sheared granular flow, as reported recently by Barkeret al.(J. Fluid Mech., vol. 779, 2015, pp. 794–818). The present paper presents a more comprehensive study of the linear stability of planar simple shearing and pure shearing flows, with account taken of convective Kelvin wavevector stretching by the base flow. We provide a closed-form solution for the linear-stability problem and show that wavevector stretching leads to asymptotic stabilization of the non-convective instability found by Barkeret al.(J. Fluid Mech., vol. 779, 2015, pp. 794–818). We also explore the stabilizing effects of higher velocity gradients achieved by an enhanced-continuum model based on a dissipative analogue of the van der Waals–Cahn–Hilliard equation of equilibrium thermodynamics. This model involves a dissipative hyperstress, as the analogue of a special Korteweg stress, with surface viscosity representing the counterpart of elastic surface tension. Based on the enhanced-continuum model, we also present a model of steady shear bands and their nonlinear stability against parallel shearing. Finally, we propose a theoretical connection between the non-convective instability of Barkeret al.(J. Fluid Mech., vol. 779, 2015, pp. 794–818) and the loss of generalized ellipticity in the quasi-static field equations. Apart from the theoretical interest, the present work may suggest stratagems for the numerical simulation of continuum field equations involving the$\unicode[STIX]{x1D707}(I)$rheology and variants thereof.