This conversation has been merged. Please reference the main conversation: Photoshop: Inline Smart Object Editing (Symbols)
The existing feature 'convert to layers' doesn't really fulfill the utility of this request, since this feature may alter the resolution of the smart object's content. For myself, retaining maximum resolution while shrinking an object's scale is the more useful feature of a smart object.
In this way, my proposed feature would act similar to the 'edit in place' feature from Adobe Animate.
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