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I ran `pulumi up` on a stack that I have deployed previously. Now, after rerunning it, `pulumi preview` literally was hanging for 3 hours before I got prompted to confirm the update. Anyone else experienced this? I have spent quite some time setting up our stack in pulumi, but this experience makes me question whether I want to keep using this tool at all.

It is not caused by Pulumi. When that sort of thing happens, it is caused by a timeout in one of the providers you are using: the cloud isn't responding and something is timing out. This would happen no matter what tool you used.
You need to find out what resource isn't responding, and why.

If it hung for ages and then failed, I'd suggest that the first place to try would be the creds you're using, as that behaviour happens when a session token expires. However, if Pulumi is successfully recovering and attempting to proceed, then it's not an auth issue.