Cam you upload your layered document and post a link to that file? So we can test if your document smart object layer's object can be updated on our machines. Your file may be corrupt. I also use windows you may have a Mac version problem. Let others test your existing object see if it can be updated.
The file I was working on is confidential as it is property of my employer. I won't be able to upload. That being said, I am able to update the smart object no problem on my Mac at work. So testing on other machines shows that the files are not corrupt.
In that case instead of trying to update the Smart layers object layer's object. Delete the smart opject layer then add a replacement smart ojbect layer.