When you install Photoshop Elements at a custom location with the installation path containing double byte characters, you face the following issues.

Smart tags are not generated

When you launch Elements Organizer, it does not automatically analyze photos in your catalog and does not generate tags for them.

Face detection does not work

When you open an image with a face in Photoshop Elements and use Adjust Facial Features, you get the following message:

No faces could be found in this photo. Please try this feature with a different photo.

Instant Fix does not work

When you apply Instant Fix on an image and navigate to either of the Crop/Effects/Light/Color/Clarity/Effects panels, the previews are not generated and it does not work.

Auto Curate does not work

When you launch Elements Organizer and select Auto Curate, the photos in your catalog are not auto-curated. When you select Auto Curate, you get the following message:

Auto curation is currently in process. Please try again later.

Auto Creations are not generated

When you open the Elements Home Screen, no Auto Creations are visible under the section Auto Creations.

Solution

To resolve these issues, uninstall and then reinstall Photoshop Elements at the default location or at a location that does not contain any double-byte characters.