Symptoms
Workflow stuck because SharePoint set permission event is failing with "The operation has timed out"
Diagnoses
This can be seen within workspace whereby you have workflows that are bounded to Sharepoint folders go into error state stating "the operation has timed out"
What could be the cause of this issue?
Resolution
This could be down to a Sharepoint problem that may need to be looked at further going forward.
Also please check to see if all the SP group providers are valid, meaning check within workspaceandgtandgtandgtManagementandgtandgtandgtUser Managers andgtandgtandgtSP and please do review the urls here.
If a process is using a Sharepoint group it will need to look at all the GP's before actually processing the request made within the workflow, so if one fails here it could indeed affect the procedure of the workflow.