It is  a possible bug... I would send an e-mail to support directing them to this thread and the urgent need because of your production workflow for them to look at it. I downloaded your smart materials. Recreated your steps and got the same results as you described. Did other test to show the problem. I created a png file with some color and the rest is transparent.  I then created a smart material using that png file. You can see in the picture that the larger smart material thu
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