This is still happening. I think it is caused if you accidentally interact with "the thing" while getting wool. A different dialogue comes up when you go to turn in the balls that includes the option:
"I need to talk to you about shearing these sheep!"
It also says something about wanting to talk about the monster. Without this interaction with the "the thing" all of the turn in dialogues are "Click here to continue".
I tested this by adding the above line to your dialogue completer in the open source version of the script, interacting with "the thing" manually, checked to see that this additional dialogue was there manually, then letting the script collect and spin the wool, then turn in. On the single test I ran it was successful
I will let you know if it gets stuck in the loop again but I have a high degree of confidence that this resolved the issue.
Thanks for this amazing script!