Capturing timer value based on external interrupt , leveraging the 62.5nsec (16MHz) resolution) of the ATMEGA328 on the Arduino Uno

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41

TIMSK1=(1<<ICIE1)|(1<<TOIE1);

The code does not like having the overflow interrupt enabled without an overflow interrupt vector.

I don't see where you actually use the overflow interrupt vector, so you can change the line to just the input capture.
TIMSK1=(1<<ICIE1);

Alternatively, until you figure out what you want for the overflow vector just use a dummy

ISR (TIMER1_OVF_vect)
{
  return;
}

Either course allows the program to avoid the resets.