Smart objects are not functioning properly. I have templates that use vector objects which have been converted to smart objects to act as containers. Typically, when I double click on the smart object and open the linked PSB file, anything I place into that smart object, once saved, stays within the boundaries of the shape in the parent document.
However, now when I drop an object into the PSB file linked to the smart object and save back to the parent document, the smart object no longer contains the object to its shape. For example, let's say I would like to create a circular photo for a website (doing it with a round image and not CSS), I used to be able to create a circular shape using the Ellipse tool and convert the shape to a smart object. I would then double click on the smart object, drop my image into the PSB, save, and the image would retain the circular shape in the parent document. It made things easy. That is no longer the case. As I have illustrated below with the images.
I have a circular smart object which I would like to use as the boundary for making a circular image. This is meant to be a template for "graphically challenged" people to just drag and drop images into.

So I double click on the smart object, drag and drop my image into the linked PSB, and save out to update the image in the parent document.

I expect to see a circular image confined to the boundaries of the circular shape of the smart object. However, what I see now is shown below.

Has something changed? Am I doing something wrong? I have never had this issue before.
PS* photograph is not mine, it was simple the first image I had access to and is simply what I dropped into the PSB to illustrate this issue.
However, now when I drop an object into the PSB file linked to the smart object and save back to the parent document, the smart object no longer contains the object to its shape. For example, let's say I would like to create a circular photo for a website (doing it with a round image and not CSS), I used to be able to create a circular shape using the Ellipse tool and convert the shape to a smart object. I would then double click on the smart object, drop my image into the PSB, save, and the image would retain the circular shape in the parent document. It made things easy. That is no longer the case. As I have illustrated below with the images.
I have a circular smart object which I would like to use as the boundary for making a circular image. This is meant to be a template for "graphically challenged" people to just drag and drop images into.
So I double click on the smart object, drag and drop my image into the linked PSB, and save out to update the image in the parent document.
I expect to see a circular image confined to the boundaries of the circular shape of the smart object. However, what I see now is shown below.
Has something changed? Am I doing something wrong? I have never had this issue before.
PS* photograph is not mine, it was simple the first image I had access to and is simply what I dropped into the PSB to illustrate this issue.
Creative Catalyst
Here we have a file with skewed smart objects of a particular size.
If I double click on the element it opens the smart object. I can then place an element inside of it...
If I now save it and go back to the parent document, the element I placed inside of the Smart Object is now contained to the shape of the Smart Object and has inherited it's transformations, e.g. skew...
However, on new files, the object inside of the Smart Object doesn't inherit the shape or the tranform. The boundaries of the Smart Object are simply not respected.
Creative Catalyst
Max Johnson, Champion
You could make a group inside the smart object named "Your Art Goes In Here" and apply a mask to that. Then the mask would make anything in the group circular and in the main fike the smart object would deform like your example...
Creative Catalyst
eartho, Champion