"Resolve conflict hangs Visual Studio" issue

UPDATE Microsoft devs say that
* The issue occurs only rarely
* The problem usually may be localized to single file, so workaround suggested is sufficient
* Fix was already implemented to be distributed in first patch

So overall that downgrades the issue from "panic mode" to "something to be aware of".

See the full discussion on the issue.


ORIGINAL POST
Some of TFS users complained, that following scenario can get the application to hang:

1. Perform Merge between two branches
2. If there are conflicts, they are identified Conflicts dialog is displayed
3. Clicking Resolve brings up Resolving Conflicts dialog, saying that summary is built.
At this point application never comes back. And whats more, it happens for some files at some conditions (not exactly identified).