Symptoms
Workflows error out if you use the Email property from a Picker source using the Item Refeference and you are on a sub site. (Smartobject YOUR SUB SITE_Management_K2Application] could not be found.)
Diagnoses
This issue only occurs on sub sites and not on Root sites. The Management Smartobject is only found on the root site and the bug is causing K2 to look for it on the sub site.
Resolution
We have created a Appit 1.5 Update 2 patch for this and can be requested from Support. The fix will ship in the next update end March.
REF: 726286 or 714208