Didn’t get your file yet, but sent another PM.
Meanwhile we have tested this and nothing appears to be wrong. But when you press “Get Local files”, a file selector dialog is beeing presented for you to select a folder. It may happen that this file select box, which waits for user action, is hidden behind other windows (Cubase, and/or other OS windows) which makes Cubase appear to be frozen, but it’s not. Check the taskbar for this hidden window, does that work for you?