Photoshop Text Layer Might Need to be updated bug?

That's a photoshop screenshot, and this is a photoshop elements group.   That message happens when you open psd templates which contain font's that are not installed on your computer, or the psd file contains fon'ts from "way back when".  Your computer will look for the fon'ts used in the template, the psd file, and won't find them because they are not installed, or they a really old, and then will then plug in generic fonts which are kinda sorta close or use the old font.

Basic fonts do change over time- and may even no longer work in newer versions of programs.  ALL PS or PSE fonts are actually vector file until you place some text on a canvas.  Once you do that the font becomes a raster image (A pixel based) image. 

I see this quite a bit in Photoshop- but in photoshop the fonts get selected automatically and all is well. 

It's all due, mostly, from using older templates (which used older "text engines") in the latest version of photoshop or photoshop elements.   

When you see it in Photoshop elements nothing you can do except to ignore it.