I appreciate that this thread is nearly 3 years old, but noted elsewhere, the same issue has been troubling me, to the extent that I had all but given up on using PSE2018, and had not bothered to upgrade. Adding GPS information is important to me, especially when travelling.
However, having recently researched the various metadata standards, and through a process of "reverse engineering", I have now gained a better understanding of what PSE2018 and GeoSetter such that I am now confident to resume using PSE, and to upgrade.
Firstly, GeoSetter is based on the "Exiftool" utility, developed by Phil Harvey, which is a very powerful tool for editing Metadata. When a co-ordinate is set, GeoSetter undertakes a 2 step process. The 1st step is to populate the corresponding fields within the EXIF:GPS header with the information corresponding to co-ordinate chosen. The 2nd step is to then map all the "EXIF" fields into the corresponding XMP fields ... and it is this 2nd step that is causing what appears to be a disparity, although both tools confirm with the guidlines produced by the Metadata Working Group.
It is worth noting that the EXIF fields are populated by the camera at the time the Picture is taken, but do not hold any infomation about time zones. The corresponding XMP fields are able to hold the timezone information, and Geosetter suffixes the date/time with the offset from GMT / UTC according to the positon of the co-ordinates chosen ... with the exception of the XMP-xmp:CreateDate tag which instead replicates the ExifIFD:DateTimeOriginal tage, and has NO timezone offset. It is the XMP-xmp:CreateDate tag that PSE uses to populate DateTimeDigitized, since it corresponds to the "Creation date of the digital representation".
PSE displays the XMP fields which hold a timezone offset inaccordance with the underlying system settings, hence the discrepancy.
To overcome the preference that all date/time fields show the same value, there are 2 option ...
The first one is to "untick" the option within Geosetter which sets the timezone offset. Refer to to the "No Entry" icons on the "Date" menu ... which will display the date/time fields as per the local time since there no timezone offsett will have been suffixed to the XMP tags. Alternatively, use the "Exiftool" utility to add the corresponding timezone offset to the -XMP-xmp:CreateDate tag to display the date/time fields as per the system settings.
I hope this helps.