Welcome to the forum.
In Edit>Preferences>Capture, is Abort on Dropped Frames checked?
Not sure if that will help, as I use other software for doing the Capture, and do digitize the full tape to one file - unless I manually stop the Capture.
No, that is not checked. In previous versions I was able to turn off scene detect, but not with PE12 (so far). If I may ask, which other software do you use to capture with?
I use ScenAlyzer Live, which was the "for-pay" version. I am not sure if it's still around.
Many felt that it was the Capture module, that Adobe should have used in both PrPro and PrE.
I find it to be a great program.
I have had no hands on experience with VHS capture when blank spaces are involved in the tape.
But, from all that I have read, this type of thing is to be expected.
a. if you had digital tape and timecode breaks were encounted
b. if you had VHS tape, the blank space would be looked on as Stop.
I do not see how this issue can be overcome in Premiere Elements capture.
Until proven otherwise, I would say cannot be done in Premiere Elements to give one continuous video when blank spots in VHS tape.