Photoshop Elements 12.1 hangs in Yosemite

After upgrading to Yosemite, PSE 12.1 hangs the moment I try to use the "smart brush" feature. This is always repeatable.
Anyone else having similar issues? I tried to open a bug at bug report.apple.com, but the site appears to be hung.

Console log from a typical hang:
10/16/14 11:35:42.791 PM Adobe Photoshop Elements Editor[5702]: objc[5702]: Class StageDelegate is implemented in both /Applications/Adobe Photoshop Elements 12/Support Files/Adobe Photoshop Elements Editor.app/Contents/Frameworks/FileInfo.framework/Versions/A/FileInfo and /Applications/Adobe Photoshop Elements 12/Support Files/Adobe Photoshop Elements Editor.app/Contents/MacOS/Adobe Photoshop Elements Editor. One of the two will be used. Which one is undefined.
10/16/14 11:35:43.506 PM Adobe Photoshop Elements Editor[5702]: WARNING: The Gestalt selector gestaltSystemVersion is returning 10.9.0 instead of 10.10.0. Use NSProcessInfo's operatingSystemVersion property to get correct system version number.
Call location:
10/16/14 11:35:43.508 PM Adobe Photoshop Elements Editor[5702]: 0   CarbonCore                          0x00007fff87a3edc3 ___Gestalt_SystemVersion_block_invoke + 113
10/16/14 11:35:43.508 PM Adobe Photoshop Elements Editor[5702]: 1   libdispatch.dylib                   0x00007fff8b1aec13 _dispatch_client_callout + 8
10/16/14 11:35:43.509 PM Adobe Photoshop Elements Editor[5702]: 2   libdispatch.dylib                   0x00007fff8b1aeb26 dispatch_once_f + 117
10/16/14 11:35:43.509 PM Adobe Photoshop Elements Editor[5702]: 3   CarbonCore                          0x00007fff879e74da _Gestalt_SystemVersion + 987
10/16/14 11:35:43.509 PM Adobe Photoshop Elements Editor[5702]: 4   CarbonCore                          0x00007fff879e70c7 Gestalt + 144
10/16/14 11:35:43.509 PM Adobe Photoshop Elements Editor[5702]: 5   Adobe Photoshop Elements Editor     0x00000001016e24f3 _ZN5boost16exception_detail20copy_boost_exceptionEPNS_9exceptionEPKS1_ + 23445139
10/16/14 11:35:43.510 PM Adobe Photoshop Elements Editor[5702]: 6   Adobe Photoshop Elements Editor     0x00000001002b4269 _ZN5boost16exception_detail20copy_boost_exceptionEPNS_9exceptionEPKS1_ + 2284553
10/16/14 11:35:59.915 PM Adobe Photoshop Elements Editor[5702]: assertion failed: 14A389: libxpc.dylib + 97940 [9437C02E-A07B-38C8-91CB-299FAA63083D]: 0x89
10/16/14 11:37:23.000 PM kernel[0]: process Adobe Photoshop [5702] caught causing excessive wakeups. Observed wakeups rate (per sec): 444; Maximum permitted wakeups rate (per sec): 150; Observation period: 300 seconds; Task lifetime number of wakeups: 45002
10/16/14 11:37:25.405 PM spindump[3423]: Saved wakeups_resource.diag report for Adobe Photoshop Elements Editor version 12.1 (20140303.12.1.49334) (12) to /Library/Logs/DiagnosticReports/Adobe Photoshop Elements Editor_2014-10-16-233725_Matilda.wakeups_resource.diag
10/16/14 11:38:06.000 PM kernel[0]: process Adobe Photoshop [5702] thread 179586 caught burning CPU! It used more than 50% CPU (Actual recent usage: 62%) over 180 seconds. thread lifetime cpu usage 95.609134 seconds, (77.143959 user, 18.465175 system) ledger info: balance: 90060082599 credit: 90066682987 debit: 6600388 limit: 90000000000 (50%) period: 180000000000 time since last refill (ns): 144241914997
10/16/14 11:38:07.904 PM spindump[3423]: Saved cpu_resource.diag report for Adobe Photoshop Elements Editor version 12.1 (20140303.12.1.49334) (12) to /Library/Logs/DiagnosticReports/Adobe Photoshop Elements Editor_2014-10-16-233807_Matilda.cpu_resource.diag
10/16/14 11:41:06.209 PM com.apple.xpc.launchd[1]: (com.adobe.PhotoshopElements.39508[5702]) Service exited due to signal: Terminated: 15

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