Edit: Sorry, irrelevant.
In my initial test the Layer Mask of the Adjustment Layer (missing or fully white) was the factor that led me to believe the setting made a difference.
Is ctrl-clicking to get the pop-up of the Layers with content beneath the cursor and alternative for you?
thanks guys - sorry for the delayed reply but I was having a hard time trying to find my way around the new forums
ctrl-clicking is okay, but I work with a large amount of layers that I bounce back and forth between, so prefer to find a way to directly switch to another layer without having to search through the pop-up layers menu - it becomes very tedious when the menu pops up with a selection of 20 layers and then I need to search through that list. At least with the auto-select tool I could jump right to another layer by left clicking and then deal with it from there.
If that's not an option, is there a way to hide all adjustment layers (toggle on/off maybe) with a keyboard shortcut or script? I've researched the forums but haven't found anything yet.. if there is a way to do that, then I might be able to get around this issue..
With PS CC, you can use isolation mode to only show layer types in the layer panel that you want to work on. It will show all layers in your canvas, and I'm not sure how it will work with the direct selection tool, but you might want to give it a try.