If so, is it legal for both players to skip their turns over and over? What if a player refuses to move until their opponent is in a vulnerable position?

Thanks!

Yes. You can keep skipping turns until time is called. If no one scored victory points, then the winner will be determined by a roll-off.

As long as you are passing in a reasonable time sure. If you wait 5 minutes just to say "pass" thats stalling.

Did this happen at a larger event and the Judge said they'd both get a loss for the round?

Let's say I take my time planning my move for the turn. I begin takin measures. Placing markers for reference. Then start sorting my figures to see which is the most viable spot to move them. And there, I might take like 5 minutes going back and forth just to have my strategy in order.

Is there a way for a judge to consider that stalling?

This will always, always, always, be a judgement call to be made by the judge at the time. I would say it is possible to consider this stalling, but it is not necessarily stalling.

I can be a slow player when determining moves, especially when its early in the game. I know its possible to take several minutes contemplating possible moves and what actions should be taken. However, knowing that, I know how possible it is to fake that type of thing. There is no objective way to say this is stalling, or that is stalling, aside from flat out obvious examples.

Am I wrong or what "we're" talking about isn't "skipping a turn" as much as not assigning any of your figures actions / tokenable actions.

The reason I bring it up is "skipping your turn" seems like a way to maintain the status quo - a sort of, "I'm not taking my turn so just skip me" where tokens remain and maybe even effects that last until your next turn remain since the turn was just skipped.

You still have to take your turn, however, you do not have to give any of your figures any actions if you choose.

Its semantics, I'm sure, but "skip your turn" just sounds 'fishy' to me.

If it happens once, then I wouldn't say there was a problem.

If you spend 5 minutes every turn figuring out all of the possible ways to move your three pieces or worse yet, just deciding who gets perplexed and what gets outwitted, then yeah, I would say that you were stalling big time.

It's about the number of actions and number of figures, too, though.
I would not give a person in a thousand point game using only 3 figures the same leeway that I would someone that is using 25 figures in that same game.

That's not to say that the person using 25 figures gets half an hour to figure things out, but they would get a little more time than the person with 3 figures before I start telling them that they need to finish up or pass.