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Can some others test for me?
I have a PSD file with a Smart Object that is from a RAW file. (RAW file opened as Smart Object in PS)
In PS, When I right click on that layer and choose Duplicate Layer with the option to send to a New Document it is rasterizing my Smart Object nested RAW layer into a regular background layer.
I'm on a Macbook Pro
Adobe Photoshop CC 20.0.3
No previous versions installed.
Can you recreate on your machine?
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No problen here with Win 10.
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The same thing happens on my machine.
Macbook Pro
Photoshop 20.0.3
macOS Mojave 10.14.3
I have never performed that sequence of steps before so I don't know if this is old or new behaviour.
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I just went through and the same thing happens to me. I will report the glitch but I also found a work around.
When I get the issue, it's when I have the smart object as the only layer in the project. Duplicate to a new project and it's rasterized.
Work around: Duplicate the layer with a CMD+J or create a solid color layer or just a blank layer with nothing in it. Make the new layer the background and make the one you want to duplicate become the second layer. Now duplicate. it should work fine.
DOES NOT WORK
WORKS FINE