Same issue. I had everything working fine on my rooted Nexus 4 (running stock 4.2.1), but I had done a few things that made me want to wipe the device. So I wiped the device and started fresh. Installed MobiLinc , and went to set it up again. I was prompted with the "MobiLinc Connect" box, which I don't need, so I pressed "No Thanks". I clicked over to "My Settings" and the "MobiLinc Connect" box jumped back up, but I couldn't press any of the buttons this time. It then started to flicker between the "MobiLinc Connect" box and the "My Settings" page with the "processing profile change" popup displaying periodically. Eventually it stopped responding.
I've tried resinstalling many times, but no luck. I even have a backup from Titanium Backup that I tried to restore. When restoring the backup the app has all of my data and everything can be controlled just fine. If I go to the "My Settings" I run into the same issue where the "processing profile changes" screen appears. To make things even more interesting I cannot create new widgets when this happens. I'm normally able to get through a couple of the menu options (selecting to create a scene widget, selecting the scene...), but by the time I get to the end everything freezes and the menus reset.
Edit: and I do not have device encryption turned on.