100% repro. 3.2.0 on M1 Mac Book Pro.
Process photo in Photoshop, launch Photo AI as a filter, try to click on any custom preset, and nothing happens.
However, if open the photo directly in Photo AI, custom preset works.
Topaz Photo AI [v3.2.0] on [Mac]
Does the Preset you are using include Upscale?
No, this issue applies to any custom preset created and 100% reproducible.
Please take a screen recording of this behavior so I can see exactly what is happening.
Loom is a great free application for this: Loom | Free Screen & Video Recording