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I use the function extensively for transcription. A couple of tips that help with this.
First of all, assign a hotkey. Not on topic, but a timesaver.
Second, you might benefit from finding some proxy words for a few purposes, including the automatic shutoff. When I am transcribing and there's a pause, I'll throw in a word that doesn't apply to the situation, let's say blueberry, and then find and replace that proxy with nothing, once the document is complete.
The other thing I do is use proxy words for punctuation. I find that there is a hiccup when you use Dictate's punctuation instruction words to insert a comma, a period, a question mark - especially transcribing the actual words, like time period. These 'shortcuts' are more hinderance than help on a long piece, although I appreciate their intent.
These processes don't fix, but they do optimize around the limitations in place.