Smart Object opening as .jpg instead of .psb

I received a file from another person – I didn't create it. It contains a Smart Object, which is indicated in the layer thumbnail. When I double-click to edit the smart object, a .jpg file opens, not a .psb. I know I can flatten it after making the changes and re-save it so the Smart Object updates in the PSD, but what I want to know is, why does this happen in the first place? Shouldn't a Smart Object always open a .psb?

If you placed a JPG file, then the smart object is a JPG file.
PSB is only used when Photoshop creates the smart object from layers, because PSB can contain everything in a Photoshop document.

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