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Hi there,
Welcome to the community!
Sorry to hear that the image is not appearing in the Liquify panel. Did it start happening after the recent update?
Also, does it happen if you do not convert the layer into a smart object?
Could you try resetting the preferences of Photoshop and see if that helps?
https://helpx.adobe.com/photoshop/using/preferences.html
Note: Make sure that you back up all your custom presets, brushes & actions before restoring Photoshop's preferences. Migrate presets, actions, and settings
Regards,
Sahil
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I'm having the same issue. Did you figure out how to fix this? I tried what they listed below and nothing works.