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The problem: unable to create smart object from Camera Raw to Photoshop.
In preferences for PS (the latest subscription version), under workflow, I checked Smart Object option. I closed PS, then opened it. Then in PS, I opened CRaw, made changes, clicked OK, and when I went back to PS and looked: no Smart Object below the background image I was working on.
What could be the problem and what would be the fix?
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Create Smart Object in Photoshop then apply Camera Raw filter if that is what are you trying to do. It won't work with preferences settings when you are opening/adjusting layer from Photoshop.
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OK, thanks, for clearing that up for me, I will do that. I appreciate that. Thanks.