Yes, the output stops for some 10 seconds after operating the pendant (I think any action, not only the wheel). If you press a button during that time, it still comes through. But the regular updates resumes only after about 10 seconds.
At first I thought this 10 second delay was because I somehow polled the dongle in a wrong way. But I later tried it with the Mach3 driver, and found it to exhibit the same behavior. So I would say this is again pointing to not so high quality dongle firmware.
The idea was the program was partly to investigate the issue, partly to maybe create a new driver for LinuxCNC. Like I have mentioned, I'm not fully happy with xhc-whb04b-6 component functionality nor with how its coded (too many layers of abstraction for my liking/understanding). And the "blocking calls" are basically a fundamental issue with it. But don't get me wrong. I do appreciate and praise all the work done by the guys/gals who has made and updated the component. Evidently it works fine in many situations, just not (all the time) for me.