While building, placing a block has no sound effect. Once it happens, all mobs stop moving and cannot be interacted with. Items cannot be picked up and only music and mob sound effects play. The game freezes when trying to save, but autosaves before the bug happens. Any progress after the bug occurs is lost.  

The bug is random and I don't know the cause. It happens almost every 10-15 minutes when in close proximity to villagers.