Try setting the smart object to the same blending mode as the lowest layer within it. It may work depending on the other layers and layer content
Thanks for your reply, That was one of the first things I tried. Surpsised I never ran into this before.
I also looked into the blend if, knockout and the checkeboxes below
It is a limitation of the smart object. Once the layers are in that container they are treated as a separate document with the result acting just like a pixel layer in the master document. So the layers inside the SO blend with each other using their individual blend modes, but then the result is blended with the master document using the single blend mode assigned to the SO.
It would be useful though if an SO could be given a "Pass through" blend mode in the same way as a group.
You could raise a feature request here : Photoshop Family Customer Community
Thanks for confirming, that is what I was finding. Was hoping there was a workaround, and with smart objects being so popular that someone might have found a workaround, or a few others as yourself confirming there is no workaround.
Would even be great if transform again would work on a warp, kind of like liquify lets you use that last used transformation.
I finished the by combining the top 3 layers and then the bottom 2, and visually doing the warp twice. Not as easy to get a nice result, and I even set layers temporarily to normal blend mode, then back to screen.