The Nagpur shuttler was no match for Yamaguchi in the opening game as the Japanese took a massive eight-point lead at 12-4 before closing out the game at 21-10.
Tai, who has played with both knees in braces in Paris, had previously opened up about an issue with her left knee.
Malvika Bansod continued her fine form as she cruised to her maiden Super 1000 quarterfinal after eking out a hard-fought victory against higher-ranked Kristy Gilmour in the China Open in Changzhou on Thursday.
Malvika Bansod pulled off a sensational straight-game victory over Paris Olympics bronze medallist Gregoria Mariska Tanjong of Indonesia in the women's singles opening round.
Sindhu stands on the brink of history as she pursues the gold medal in the upcoming Games, having won a silver and bronze in 2016 Rio and 2020 Tokyo edition respectively.
Indian women shuttlers' progressed to their first-ever final at the Badminton Asia Team Championships after edging out two-time former champions Japan 3-2.
Srikanth, Prannoy enter pre-quarters; Aakarshi knocked out
Chief national badminton coach Pullela Gopichand on Monday singled out world number one doubles pair of Satwiksairaj Rankireddy and Chirag Shetty as favourites for an Olympic medal and said two-time medallist PV Sindhu too is on the right path and can deliver once again at the Paris Games.
World champion Kunlavut Vitidsarn crashed out of the India Open Super 750 badminton tournament
As Kidambi Srikanth lost his second round match, India's campaign ended at the Singapore Open.
World No. 1 Yamaguchi, however, had to toil hard to get across three-time world champion and Rio gold medallist Carolina Marin of Spain 21-17, 14-21, 21-19 in the day's first match at the IG stadium in New Delhi.
Set to return after an injury-induced break, two-time Olympic medallist PV Sindhu is aware the road to Paris will be "challenging" and she needs to be "smarter" in her pursuit of coveted gold medal in the French capital.
Lakshya Sen upset World No 4 Loh Kean Yew of Singapore in the round of 32 match at the Malaysia Masters.
Lakshya Sen, returning from a break, suffered a first round exit, while Treesa Jolly and Gayatri Gopichand entered the pre-quarters of the Asia Badminton Championship.
Kidambi Srikanth made a winning start but PV Sindhu and HS Prannoy were ousted
Thailand's Kunlavut Vitidsarn and Korea's An Seyoung emerged men's and women's singles champions respectively at the India Open Super 750 tournament.
India's two-time Olympic medallist P V Sindhu romped into the women's singles semi-finals of the Indonesia Masters Super 750 badminton tournament with an easy victory over Turkey's Neslihan Yigit, in Bali, on Friday.
The core of the team remains the same with HS Prannoy, Lakshya Sen and Satwiksairaj Rankireddy and Chirag Shetty in good form and the Indian team would hope the rub of the green also goes their way when it begins campaign on Thursday.
Sindhu, Sen look to regain lost touch in Canada Open
Sindhu, seeded third, was not at her usual best and trailed her Japanese opponent from the start in both the games.
Sen has a 4-2 head-to-head record against his final opponent Li Shi Feng, the reigning All-England champion. Sen had defeated him recently at the Thailand Open.
With the main draw of the Asian Badminton Championships set to get underway from Wednesday, the struggling Indian shuttlers face an uphill task.
Sindhu assured herself of a medal in the Double Olympic medallist P V Sindhu eked out a thrilling win over China's He Bing Jiao to enter the singles semi-finals of the Badminton Asia Championships in Manila on Friday.
Fresh from their Korea Open triumph, Satwiksairaj Rankireddy and Chirag Shetty will look to continue their dream run.
Double Olympic medallist PV Sindhu, who is returning from an ankle injury, begins her campaign against former World Champion Carolina Marin of Spain in the first round of Malaysia Open.
The fifth seed Indian lost 21-12, 10-21, 19-21 in his opening round men's singles tie that lasted 56 minutes.
Sindhu will play her opening match on Sunday, while B Sai Praneeth and the men's pair of Chirag Shetty and Satwiksairaj Rankireddy will be in action on Saturday.
Manu Bhaker and Deepika Kumari will be keen to make up for their below-par starts as they take centrestage on Day 7 of the Tokyo Olympics, on Friday.
Sindhu battled hard before going down to Akane Yamaguchi 18-21, 15-21.
Denmark's Viktor Axelsen and Japan's Akane Yamaguchi's dominance continued as they stayed on course for a second successive title.
The 19-year-old Indian came up with a splendid display but it was not enough to prevent him doing down 17-21, 21-16, 17-21 after 55 minutes.
None of the other three quarters boast of such a strong star cast but there would be a few mouth-watering opening round clashes to look forward to.
Sindhu had been left in tears after an 'unfair' call by the umpires midway
Srikanth made an attacking start after the change of ends, putting his smashes to good use, to lead 5-1. Two tight smashes on either side helped the Indian to maintain his lead to 8-3 before he entered the break with a healthy seven-point advantage when Axelsen went to the net.
Her reluctance to appear for BAI trials could well end her chances of representing the flag
PV Sindhu eked out a three-game win over world number 1 Akane Yamaguchi of Japan
India's P V Sindhu squandered an 11-6 lead in the second game before going down 18-21, 21-18, 21-8 in 68 minutes to former world number one Akane Yamaguchi.
If Sindhu and Saina win their respective second round matches, they will face each other in the quarter-finals.
Indian badminton star Pusarla V Sindhu won badminton's women's bronze at the Tokyo Olympics, beating China's He Bing Jao 21-13, 21-15 in third-place play-off on Sunday.
Olympic bronze-medallist Saina Nehwal clinched the $700,000 China Open Super Series Premier tournament after beating young Akane Yamaguchi of Japan in the summit clash, in Fuzhou, China, on Sunday.
