Same issue. Using 2014 iMac.
Doesn't matter how large or small the image is, or whether using Surface Blue through smart layers or not. Still layer disappears and nothing happens.
I have the same issue on mac book pro late 2013
Having the same issue on iMac Retina 5K, 2017 running OS X Sierra 10.12.6. The issue started occurring when I updated PS to CC 19.0 Release.
Please help! This is a crucial tool for me.
I hope it'll be looked into soon, as it is a crucial tool for me too. Having tested several other Macs with the same version, it appears to be a general issue to me as well.
As a temporary solution, I have found that the initial background layer which is locked works with surface blur - as long as you do not remove the lock from the background.
Hence, you need to make the area which you want to use Surface Blur upon and use it directly that way - it is far from optimal, but serves as a kind of last-option way around this issue to me at least.
Hopefully Adobe will look into this soon.