PatchMatch is an algorithm to quickly... match similar patches in an image, it is used in a lot of texture synthesis algos. See my answer to fitzwatermellow for the difference between texture synthesis and WFC. So yes, it's related.
Photoshop's implementation of PatchMatch handles constraints perfectly, yes.
Also note how PatchMatch can work with constraints.
[1] http://vis.berkeley.edu/courses/cs294-69-fa11/wiki/images/1/...