It's an automatic detection should a possible hang / freeze is detected, enable the ability to send crash report to developers so hopefully can be analyzed. Write the description of crashes, including the contact mail or probably #hashtag as well (and you can report here in forum mentioning your #hashtag so developers hopefully can search the crash report faster).
However, if after a 'hang-session' passing and the application back to run normally again, the 'VEGAS is Working' will disappear.
Usually when opening an old complex project, can probably-trigger the possible hang, although it is false-positive.
This is to help the development team. Previously, if VEGAS hung, the only way to deal with it is to go to task manager and kill the process and the VEGAS team really has no way of know what happened. Now, if VEGAS hangs, the user and kill the process from the dialog and then has the option of sending an error report to our team so we can investigate why the app hung for the user.