Speech-to-text is not a useful feature, though it works as well here in version 12.x as it always did and doesn't hang, as you describe.
The result is a single, long line of text, not broken up into typical subtitle pieces. And the Microsoft recognition engine used does a poor job.
Suggest instead trying this utility (or similar) which has a number of output options that work well with Videopad.
File a bug report here.
Try the latest VP release. For licensed users upgrades are free for up to six months from purchase date. After that, VP will continue to fully function but a fee will be required in order to register the newest. Retain your old install file and registration info.