I want to edit in a complete non destructive way, so i work with smart objects and separate blemish removal layers. However, when i double click on my smart object to edit it in camera RAW, after i save the changes, my blemish layer looks like this:
On this particular example, i brought down the exposure on the smart object in camera raw and the corresponding exposure adjustment was not applied to the retouching layer as well. This defeats the whole purpose of making a separate adjustment layer if i have to make a new one every time i make adjustments to to the smart object.
Your workflow is flawed in that once you correct your file in camera raw, it should be left alone if you have other layers that depend upon it's settings for consistancy. You're better option would be to use adjustment layers in a group or SO that are above your retouch layer so that it changes both layers. With CC, you can bring in a layer to ACR as a smart object, but I'm not sure if you can have multiple layers within that SO. This might be a work around, but you would be bringing in the pixels of the layer rather than the original RAW image.
On this particular example, i brought down the exposure on the smart object in camera raw and the corresponding exposure adjustment was not applied to the retouching layer as well.
Where did you get the idea that a pixel layer would be affected by a change in an ACR Smart Object?
Like csuebele points out Adjustment Layers in the containing document can be employed (working in 16bit might be advisable) but depending on the extent of the blemishes you could also try using ACR’s Spot Removal Tool.