Yes, it was LFS freeze but I menaged to find out culprit - turns out OVRService is little bit buggy when it comes to DK2 and it just randomly crashed/froze with high cpu usage and no response.
So turns out problem was on my end and I overcome it by restarting OVRService. I'll play LFS for a bit now to see if everything works fine and in case of any crashes and so on you can expect my post here.
Thanks for nice work on this stuff
As for my DK2 everything from store works fine, 3rd party programs support is enabled in oculus settings but I didn't try anything outside of store yet.
Only way to do anything with LFS after crash is to manually kill process, no sings of any recovery from freeze after 5 minutes.
If it might be of any help I'm using R9 280x with 16.3.2 drivers.
In case of DK2 & 1.3 runtime game immediatelly freezes the moment I press "ok" at 3D mode options.
Just noticed LFS on this pc is in M version, gonna update post after I install newer version.
[edit]
Same thing happening at version N - crash after pressing ok in 3D mode options [DK2, 1.3 runtime].