Thanks for the explanation. I understand that the toggle mode brings Fences in-front. But I don't understand why the desktop is frozen -- this does not happen to any other apps or windows. For example, I am using a web browser right now in-front, but I can still click anywhere in the desktop and show the right-click menu. I can also see all the files on the desktop -- they don't disappear. The web browser is simply active but it does block the access to other apps or files.
Another issue is that if I bring Fences in-front and click an app in the Fences window, then this is supposed to bring the app in-front and deactivate Fences from the front. But if I minimize the app to show the desktop, the right-click menu is still frozen. This does not happen to any other apps or windows, because usually when an app is selected, the app window will become active and the previous active window will be deactivated. But Fences remains active when I select an app or another window.