A workflow I've long used in Photoshop is:
- Open new canvas.
- Place as Embedded (formerly just Place) a .jpg for composite.
- Photoshop automatically places this as a smart object.
- Double-click smart object to open in it's own window/tab (Photoshop opens this as a .psb) to make destructive or multi-layer edits.
- Save and close .psb to return to canvas and see updates.
When I try to follow this workflow in the latest versions of Photoshop, it opens up the smart object as a .jpg and when I attempt to save and close, it wants to do a Save As to the file system, as if it's an externally linked file.
Is there a way to make it behave the way it used to? If not, how to do I make multi-layer edits to the embedded Smart Object?