While playing with that encoding dialog, in diff I made changes, and undo -- after the 2nd undo vsdiff hung.
The vsdiff window became unresponsive to mouse and keyboard but Windows *does not* show vsdiff as hung.
Generally this means that the event loop is still running.
vsdiff is not using CPU - so it is not busy waiting, just not responding to anything.
Hm...after more experimenting, I got it to respond again - partially.
Now, I can move cursor around do stuff in the VSDIFF window, but I still cannot resize the window.
Weird.