Update Smart Object is a preset from the Retouching Bundle. It allows you to update or overwrite the content of a selected smart object. You can specify how the content will be composed. You can also define how the new layer within the smart object should be named. Properties of the smart object, such as layer mask, layer effects, or smart filters, will be preserved.
Choose whether to use a copy of the entire document or only the layers below the selected smart object as reference.
Enabling this option replaces the entire content of the selected smart object with one single layer. All layers will be deleted and can’t be restored!
Name with timestamp
You can rename the layer added to the smart object with the current timestamp. This allows you to keeps track of the different versions you created.
Activated, the time is given in 24-hour format, i.e., 23:59:22. If it is disabled, the 12-hour format will be used: 11:59:22 PM.
Layer name & color
Of course, if you do not want to use a timestamp, you can define your own name and the color for the layer.