Transform bounding box changes sizes on free transform activation

Windows 11
Photoshop 26.9

When using the move tool to grab a corner of a smart object, on click the size of the bounding box changes to the full size of the smart object. This makes it impossible to click and drag to transform.  You have to release the click and then go to the new position of the corner.  

The transformation corners of the smart object should be consistent regardless of layer visibility within the smart object.  Ether make it so that the corners always reflect the full size of the layers in the smart object or make it so that the corners only reflect the visible area of the smart object.