Robby discovered a bug in the merge logic. The merge was failing to deal with items who's content had not changed, but who's metadata had and that metadata included a large amount (more than 20K) worth of extended attributes.
If anyone else is encountering this issue, you're welcome to download and install pre-release version 1.2.2(1):
Download the
QRecall 1.2.2(1) disk image.
Open the disk image and launch the Install QRecall application.