The Left/Right Profile tags in the head are confusing the Walk behavior -- if it sees those views, it will only look within them for body parts.
1) remove all Walk behaviors (you have 4) by selecting the different groups in the puppet panel and then using the hamburger menu next to the Walk behavior in the properties panel to remove the behaviors (the top-level one shows up when you select the very top level, or nothing)
2) select the Body group and apply Walk there (there are no Profile tags there, so it won't get confused)
Some of your groups will attach better if you select them and change Attach To to Auto in the properties panel (Necklace in particular, it also need repositioning of its origin point to be near the neck). It's a bug in 1.1 that newly added groups don't default to Auto the way groups in imported artwork do.
This was a hasty edit(I'm in a meeting), but I got you quite a bit closer.
Like DaveS mentioned, the Walk behavior will look within a profile view for ALL of the tags. Since we want the Face behavior to cooperate with the Walk behavior, we need the head and body to be contained within a profile view.
* I tagged “Sad Boy” Left Profile so the Walk behavior would be able to see the neck handles on the Head
* I moved the Walk behavior from “Body” to the top level puppet so it would be able to see the Neck handle.
* I made sure each arm and leg had the Attach To set to “Auto” and the Attach Style set to “Weld”. They should be set to “Auto” by default. We have a bug that’s fixed in an internal version that fixes a case where this resets to the parent’s origin. Feel free to contact me at dramirez|at|adobe.com to get you added to the private beta program if you want earlier access to bugfixes and new features.
* I put the RArm layer behind the leg so it won’t slice over his leg
* I moved the hip and waist tags to the “Body” layer
* I removed your neck handle and tagged the “Head” handle with the “Neck” handle. It worked fine the way you had it, but this allows the head to move the torso a little bit better.
Looks like the one I posted has sticks on one leg and not the other.
thank you so much!