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Locks up so you're unable to undo it unless you use a pair of grips.
Fairly common, but keeping it lubed with WD-40 or light oil every now and again helps a lot.
Keep an eye on the chuck thing on those gen 3 impact drivers boys.
They're known for having a poor grip on the bits and the bits can just fall out.
There's a gen 3.5 which fixes the issue. A new updated chuck isn't that expensive if yours does it.