My first thought would be that you've got that state using the "Finished" as the exiting transition state.
That's one of the hard-coded events that comes with playmaker... and it's behavior will be that it will fire off the transition as soon as each of the actions is reported as having completed... so, even though you have the "every frame" checked, it's still going "well, this transition is telling me to wrap this all up and go to the next state when these other actions are finished.
suggestion? create a new, custom event and use that as your transition out of that state. that should fix that up...
And that error is part of Playmaker's native error checking. it's meant to fire off when it detects a possible infinite loop (which will completely soak up all your computer's resources in most cases and will slow your computer to a snail's pace.)