When I create a frame then drag a RAW file from windows file explorer and drop it into the frame the smart object is not scaled to fill the frame. I can target the smart object and modify its associated transform to scale the object correctly
The feature is not automatically scaling the image as it should. I had no problem correcting its scaling problem. It is also not an Alt+Drag if you use the PSUserConfif.txt to fix Transform to work like all other Photoshop tools you also need to use the Shift key. Shift+Alt+Drag. Which is what I did. Alt is from the reference point, not uniform Scaling.
I was informed the feature will only downsize image not upsize. The problem is the downsizing done is not always correct. I believe Photoshop option resize when placing is overriding Photoshop Frame Feature scaling. Here I created a document 1700x1100 px smaller than my cr2 8MP RAW file portrait image that is 2336 3504 px. I create a full-size document frame with the document's 17:11 Landscape aspect ratio and duped the document three times, in the duplicated documents I scale down the frame some while maintaining the 17:11 aspect ratio. I then dropped the same raw file on each of the document fares. All the place images were downsized. Only one was downsized correctly.
The major problem is in Place it degrades image by resizing placed when the Image file print resolution is different than the document that it is being placed into. Photoshop is not placing in your image it interpolating it to a different image size of lowering its image quality. This has always been a problem with Photoshop's place feature.