Creating Related Content views
Pathauto module doesn't have to do anything with this view. I think you are not supplying any default value to contextual filters used in your block type of view.

For creating the related content view, please try following steps


Create a Block type of display.





Add Contextual filter for the taxonomy term -> goto settings of this filter -> select "default value" -> select "taxonomy term id from url" -> select limit by vocabulary -> select "vocabulary" -> select appropriate option from "Multiple-value handling" -> expand "more" fieldset and set allow multiple values.
Enable Aggregation settings, and add the same taxonomy field in sort criteria and from aggregation settings select "COUNT DISTINCT"
Add "Nid" as contextual filter -> go to settings -> select "default value" -> select "Content Id from URL" -> From "more" fieldset -> select "Exclude" - now results will not show the current node.



Place this block now on your node page, and this block will list all the related content.