AVI movies won't convert to HLS

tested on vlc-2.2.0-x86_64-20141006-0312.zip

tested on win7 & mac os Yosemite

trying to convert any avi freezes VLC. Log attached. this is not a problem in 3.00

I see this for all avi files, but one example is: http://streams.videolan.org/samples/V-codecs/h264/x264.avi

conversion command:

"/Applications/VLCStreamer.app/Contents/MacOS/VLC/VLC.app/Contents/MacOS/VLC" --ignore-config -I dummy --no-sout-all "/Users/rob/tmp/x264.avi" vlc://quit --sout='#transcode{vcodec=h264,soverlay,acodec=aac,channels=2,venc=x264{hrd=vbr,profile=baseline,level=3,preset=fast,keyint=5,ref=1,vbv-maxrate=600,vbv-bufsize=600},width=640,ab=96,deinterlace}:std{access=livehttp{seglen=10,index="/Users/rob/Library/Application Support/VLCStreamer/Streams/x264/stream.m3u8",index-url=stream-###.ts},mux=ts{use-key-frames},dst="/Users/rob/Library/Application Support/VLCStreamer/Streams/x264/stream-###.ts"}' --sout-avcodec-strict=-2 -vvv