Hmmm… this is a bit puzzling.
The next thing I’d usually ask is whether “Send to LayOut” is actually running LayOut 2017, or if perhaps it’s accidentally opening an older version of LayOut. But since you’re seeing the same issue when you run LayOut 2017 by hand and do a “File->Insert”, I can’t imagine that’s the problem.
There’s a slim chance this is a graphics card driver issue - in theory SketchUp and LayOut use the graphics driver the same way, but the memory handling is a bit different. Perhaps you could try checking for an updated driver for your video card? Check with Windows Update, the computer manufacturer, or maybe the video card company directly.
Try creating a document using the smallest paper size available in LayOut, then do a File->Insert. This will limit how much memory LayOut tries to use for creating the rendered image.
You can also run Task Manager and observe what LayOut is doing. Is it using a lot of CPU power or is it just frozen? Is it using a lot of memory?