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Smart objects work differently after upgrading to CC?

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Before I would import a jpg as a smart object into my working doc. If I wanted to make changes to it, I would double click on it int he layer panel and it would open as a .psb. I would make changes and click save and it would update in my original document.

 

Using this method now, a "save as" window pops up to save my doc as a psd or whatever and when I do, it saves it in some temp folder but it does not update in my original document.

 

What gives??


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