Liqufy space coordinates does not align on smart objects again

I know that and what I'm saying it was working fine for many years. If there is a any walkaround to apply same liquify mesh on smart layer, mask and other raster layers let me know.

The smart object is still outside the bounds and different proportions from the parent document. I get the same results going back to at least 5 full versions back - this is the way that Liqiufy has always worked with Smart Objects.

I costructed that file in that way, because it always used to work. Now it does not work like that anymore. Smart objects used to work as if they were rasterised even if they are out of bounds.
I've made another experiment to ilustrate this better.
https://shared-assets.adobe.com/link/26732362-0f96-4883-69dc-c8e27cbea581
This time compare what hapens after "convert to smart object" and after "rasterise".
You get differrent results even when liqify is restricted by selection to the middle of the file.

Thanks for the file. This is caused by a couple of things in the way file is constructed and the way that Smart Objects work.

I've reconstructed your file (specificall the middle smart object layer) to get the "correct" results where the swirls and bends of the visible trees line up (Please confirm this is what you'd expect - PSD here: https://shared-assets.adobe.com/link/5e257596-bcdf-4de1-67a1-e12e5a642585 😞

Here's the results from the action you've provided: 

The smart object your action creates is actually bigger than the bounds of the parent canvas (I've performed a Image > Reveal All after running your acction to show this):

If you double-click the Smart Object in the file your action this is what it contains:

If you double-click the Smart Object in my file, you'll see the Smart Object matches the boulds of what's visible in the parent doc:

Here is the link to the action I've made:
https://shared-assets.adobe.com/link/32d8728a-d354-419a-4e45-3e88661077bb
You'll have to press "convert to the smart object" once it runs.
Also I've noticed that there is another bug, liqufy does not appear visually now once I've restarted photoshop and ran the action. To see the effect you need to turn it off/on.

Can you share the PST file you're that exhibits the behavior you're showing above? Post a URL to the file using CC files or dropbox, or something similar to share the file.