Every time I try and change the gamemode or game difficulty in the settings menu the game soft freezes. By soft freeze I mean I can still tap on the pop ups but I cant exit or do anything else unless I reset. This also happens when creating a new world. This bug is one of the worst right now and because of It I cant create any worlds in creative.
Edit: April 18th
This bug still exists. I would like the mods for reopening this. It still happens in 1.0.6 and is getting progressively more annoying. I had to download someone else's world just to /fill it to make it superflat because creating any superflat world is impossible.
To also add, very rarely this bug will not occur for me. This has only happened 3 times, all of those times its when im changing the difficulty of a creative world. No other time has this bug not happened. I am still not using any resource packs or mods. I am using the Classic UI profile but I have tested it, and it also occurs on the Pocket UI Profile. (Note that, yes I know the difficulty can be changed with commands. I forget that alot.)
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Yeah thats the thing. I dont have any mods/addons other than one texture pack, and I already deleted it and restarted and that didnt solve it so im not sure thats it in this case? I did download a PC GUI mod a very long time ago like when 1.0 originally came out but I deleted it almost immediately because it didn't work at all.
It could be just the lag/stall mentioned at MCPE-18160. If you think it is, please add a vote and any extra information there.

Its not. That is saying that the entire settings screen lags and it dosent. The game freezes, not lags, whenever I try to change the gamemode or difficulty, not any setting. Its clearly a different issue.

Reopened.
Make sure you don't have an older version of "PC GUI" addon or anything similar to it.
It is known to cause the very problem you described.