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It is 8 Bits/Channel. I tried converting it to a smart object too.
Can you post a screen shot? What color space are you using?
Do you have something like an Adjustment Layer or a Mask selected within the Layers panel?
I don't, I just have the layer selected.
Your screenshot is showing us exactly what is happening when Smart Object layer is selected in the Layers panel.
Try to select pixel based layer. If nothing helps try with preference reset what is general advice for all things weird in Photoshop https://helpx.adobe.com/photoshop/using/preferences.html