There is a bug in the smudge tool

Hi @rolfdim could you share a video of your workflow and when you see this issue for the team?  

1. Try resetting Prefs for the Beta:
/Users/yourname/Library/Preferences/ Photoshop Beta Settings (Mac Ventura)
/Users/yourname/Library/Preferences/Adobe\ Photoshop\ \(Beta\)\ Settings (Mac)


C:\Users\user name\AppData\Roaming\Adobe\Adobe Photoshop (Beta)\Adobe Photoshop (Beta) Settings

Launch BETA Photoshop While Pressing The Keyboard Shortcut
With Photoshop closed, press and hold Shift+Ctrl+Alt (Win) / Shift+Command+Option (Mac) on your keyboard and then Launch Photoshop the way you normally would.
https://helpx.adobe.com/photoshop/using/preferences.html#Manually 

2. It may help if we could see your Photoshop beta System Info. Launch Photoshop beta, and select Help >System Info...and copy/paste the text in a reply.  

Thanks,

Cory - Photoshop Product Manager