The magical auto album creation feature of Google Assistant in the Photos app appears to be out of service for a while. The company has acknowledged the issue.
Assistant in Google Photos offers to create albums without any user input. It selects best shots from pictures using geo-tagging or locations data and frequently appearing faces in pictures to create albums. For some reason, Assistant isn’t automatically creating albums since February, 2017.
An expert on official Photos forum acknowledged this problem on May 5, 2017 saying:
“I’m getting this issue checked for you with the product team”.
She further added:
“The team is aware about the issue and are looking into it”
on June 13, 2017.
So it’s clear that Google knows about the bug and might come up with a fix soon. If Assistant’s auto album creation is not working for you also, keep coming back here for further updates on the issue.