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Could you double click the Smart Object to open it in a new window, and paste a full res screen shot of the layers panel here. It would probably be useful to include the image as well.
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I can't see any problems there.
Check the Characters panel and see if any of the ligature options are turned on.
Substitute the font temporarily to see if it is font specific.
When you edit the type layer in the SO edit window, is the issue immeadiately apparent, or only when you save it back to the main document?
A wee workaround that can fix weird type layer issues is to add a space or two at the start and end of the text, but IME that is usually for issues that arrise when exporting to PDF (High Quality Print) but that is exactly the sort of glitch that fixes.
Have you tried removing the problem type layer from the SO and using it on a sperarate type layer?