The problem is probably that the bandwidth is too small. You can only make a prediction at a location if there is an input point within the bandwidth distance. You should also look into Kernel Interpolation with Barriers. It generally outperforms Diffusion Interpolation with Barriers.
Kernel Interpolation can slow to a standstill if your barrier is too complicated. You should be able to resolve this by running Simplify Polygon on your barrier to reduce the number of vertices. That should get Kernel Interpolation working fast again.
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