Two questions: which exact version of PhotoStory do you currently have, and is it registered to your Magic Account? You can check under Help>About.; and are you sure your Update Service is still current? Updates are free for one year from the initial purchase and registration, any subsequent updates are subject to you paying to renew your update service.
That is very old. The current latest is 19.0.2.36.
Given your version is so old I suspect the reason for the update freeze is a combination of the fact your Update Service is clearly no longer in existence, if it ever was, and the fact that the Magix update servers may well no longer have updates to that version actually available to download. So, when you click to check for updates the software is receiving no response from the server it is attempting to contact, and the program freezes.