The propagation algorithm, which normally works silently without any problems, will become very visible when you create a circuit that oscillates.
When Logisim detects oscillation, it shuts down all further simulation. You can re-enable simulation using the Simulate menu's Simulation Enabled option.
Logisim detects oscillation using a fairly simple technique: If the circuit simulation seems to many iterations, then it will simply give up and report oscillation. Thus, it could erroneously report oscillation, particularly if you are working with an exceptionally large circuit; but it would be one that is larger than any I have built using Logisim. In any case, if you are confident that the reporting is in error, you can configure the number of iterations completed before oscillation occurs via the Project Options window's Simulation tab.
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