Were the two larvae (the one in the stem) and the doze or so similar in appearance? It's unusual that there would be that many - and by your description, I'm assuming they were in the soil. They may or may not be related to the problem. Hibiscus, as with all flowering shrubs, need to be pruned on a regular basis to maintain healthy wood. If left unpruned, the wood becomes thick, old, and very susceptible to diseases, borers etc. I'm also going to assume that you removed the larvae that you found in the hold before you replanted the new hibiscus. Your approach at this point is to keep the new plant healthy - fertilize for vigor, water during periods of drought, and prune yearly to maintain healthy wood.