Can taxonomy tags/terms be more than one word?
I found Only works with first taxonomy term views3 D7 which is about the same issue you have.

This is what comment #18 and #20 say. You might also look at comment #28. 


  This works very well, but it only works with the first tag/taxonomy term applied to a node. For instance, if a post was tagged Cheese, Recipe, Tomatoes, and Pasta, it would show other posts tagged with Cheese, but not those tagged with Recipe, Tomatoes, or Pasta. Is there a way to get it to consider all taxonomy terms, not just the first one?





  I just tried this solution and it seems to work. Just select "Reduce Duplicates" then under "More" select "Allow multiple values." That's it, you should have all the things being printed out and not just things related to the first term. Let me know if this helps.