I have a command block set to "repeat," "unconditional," and "always active" that makes all entities glow. However, it doesn't work on minecarts, item frames, or arrows, although it does work on armor stands. Why are some entities different than others?
EDIT 4/28/16: Added screenshots. I went through all the mobs in the game. I couldn't get a good screenshot of the projectiles, but other than that...
All the egg-spawned hostile and passive mobs glow like normal. However, the Ender Dragon and Wither don't glow. Neither do the immobile entities like the lead knot, end crystal, item frame, or painting. Transportation entities (minecarts and boats) are out also, as are primed TNT, falling sand, item drops, and XP orbs.
EDIT 4/30/16: From my manual /effect command (see comments and screenshots) it seems that the game doesn't even recognize that the Item Frame's in existence to make it glow. Extrapolating to the other entities, perhaps the game doesn't recognize that non-mobs are in existence to apply the effect?
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/effect @e glowing 1000000 0 true
Since I was able to make myself glow, as well as the armor stands and most mobs (all if you don't count the bosses), clearly the code works. Plus, I continued glowing even after using /effect @p clear, which successfully showed "Cleared all effects" in the chat bar, proving that the command block does output every tick.
Just to see if it would work, I manually typed /effect @e[type=ItemFrame] glowing into the chat box, and I got the attached screenshot as a result. Since there's an item frame in the picture, obviously there's an ItemFrame in existence to make glow.
And since you asked so nicely, I've attached the crash report. Not that I have any idea how to read it, so maybe you can get something useful out of it.
P.S. The glow's not working properly in your screenshot, either. The command block is glowing, in spite of not being an entity (from the fact that it can't exist in the same coordinates as another block, as well as its not being given an Entity ID - http://minecraft.gamepedia.com/Data_values/Entity_IDs - I'm assuming that it's not an entity) and you can see the texture, not just the glow, through the stone block. Compare to the boat, which you managed to get working, which you can't see the boat through the stone, only its glow.
It's WAY, as you can't apply potion effect to all entities, only to mobs❓ . You should use
/entitydata @e {Glowing:1}@unknown not true, the Glowing tag is part of the basis entity tags, see http://minecraft.gamepedia.com/Chunk_format#Entity_format for more information.
Edit: whoops didn't read that right, you're correct.
Cannot reproduce in either 1.9.2 and 1.9.3-pre2 (see attached screenshot), Can you provide the EXACT command used to make all entity glowing? And in case the problem comes from your system, Please force a crash by pressing F3 + C for 10 seconds while in-game and attach the crash report here.