Symptoms
When deploying a package using the SP tooling, the tools shows "deploying item 0 of 0" and seem to hang. After a very long time, the process finally times out.
Diagnoses
This was confirmed as a bug in 4.6.9 by LABS. This issue has been addressed in 4.6.10.
Resolution
We sent the ticket to LABS and they have retrofitted the fix on the 4.6.9 codebase. After the client applied the fix in their environment, the users reported that they did not see the issue any more.