I have this issue since I upgraded to 10.10. Was not present for me in 10.04.
It happens when I want to install upgrades with the upgrade manager.
After authenticating the dialog does not disappear. However when I close it by 
clicking on the little cross in the left top, the upgrading starts anyway.

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policykit-1 password dialog sometimes hangs
https://bugs.launchpad.net/bugs/445303
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