Saw that there was an update while randomly browsing and was skeptical, but it looks like the demons have been defeated. Thanks for all the hard work nailing down this bizarre bug.
And building on what Jafo said, it wasn't just that the product failed that was so frustrating, but that it took down the entire system. We couldn't just quit it or dismiss an occasional crash dialog box. It was, "Oh boy. Time to save everything, reboot, disable Fences, reboot (to be safe), and get back to where I was." Or, worse, that buggy software bargaining we all do where we tempt fate by trying to get just a liiiitle bit more use before troubleshooting. Click that icon, go back to work and write a paragraph while the click registers, go back and drag icon to folder, go back to Chrome. Forget it! We're using cmd! I got too many tabs open with half filled text fields to turn back now!
Anyhow, yeah, thanks a bunch. Of course now I am unable to activate Fences for some reason, but I submitted a ticket and will go through the usual channels to deal with that.