P: 'Blend If' Stops Working When There is a Clipped Layer on the Group

Hello everyone,

Today, I ran into an issue with Photoshop's "Blend If" function that I haven't encountered before. I searched online but couldn’t find any clear explanation, so I’m hoping someone here might know what's happening.

System 

I am using the latest version of Photoshop on Windows 10 Pro, version 22H2.

The Issue

When I apply the "Blend If" (underlying layer) option to a layer within a group, it works fine—until I clip any layer to that group. As soon as there's a clipped layer attached, "Blend If" stops working on that layer, regardless of whether the clipped layer is visible or hidden.

Example Setup

1. Imagine two groups: Group 1 and Group 2.
2. There's one layer in each group.
3. I use the "Blend If" setting on the layer in Group 1, and it works perfectly.
4. However, as soon as I clip a layer to Group 1, the "Blend If" effect is disabled.

I've attached a video below that demonstrates the issue for more clarity.

Any insights or solutions would be greatly appreciated! Thank you!