Thanks for the suggestion, but unfortunately %%term_title%% just prints to the title exactly like %%name%% does. It’s on our author archive titles (the default that ships with the plugin), so what is needed is for %%name%% to be replaced with the author’s name.
I had the same issue with the %%name%% replacement variable on multiple installs. I went to GitHub and grabbed a copy of the latest version of /inc/wpseo-functions.php, and overwrote my local copy. Author page titles are now working as expected, and the other features of the SEO plugin seem to be working correctly so I believe this is a safe fix until a new version is released to the public.