Anand - Tag Manager API Support either older location (/etc/tags) or newer location. At the start of the component, It detects if this is an upgraded system i.e. /etc/tags exists. Then the TagManager runs in BC mode, i.e. it uses /etc/tags as base path. If not, it uses new location (for now) /content/cq:tags
Going forward, the recommendation will be:-
1. Move tags manually from /etc/tags to /content/cq:tags
2. Restart the com.day.cq.cq-tagging bundle.
3. Refresh tag manager, see the tags that are under /content/cq:tags are now listed
4. create a new tag and check it is stored under /content/cq:tags as expected.