I am getting this problem when I try to aply red eye in the develop persona. It doesn't always happen but it almost seems to be deleting part of the image as it shows the checker pattern.
Is there a "Pet Eye" feature? Adobe have one and it is much the same as red eye but allows for different pupil shape and different retina colour reflections. For example, my cat has snake like pupils and the retina reflects cyan from a direct flash source.