What does this mean, and what do you do about it?

So what does it mean? And what can be done about it? I really, really loathe restoring because the software is so appalling bad that every app location as to be reassigned and rebuilt. It always ends up being hours of work, but I have to say the new iOS is very junky.
Any suggestions are much appreciated.
When I go to see the apps on the phone I get this
I'm thinking this is not a good thing. It never resolves itself and gets loaded. From kaka software.
Message was edited by: Tom Wolsky

The reason why JJ asked what "something" is, is because a smart object means something different to a shape layer, a converted layer, a camera raw image, a movie animation, 3D object, etc. And therefore converting one way and back changes on its type with some of them very difficult or not able to reverse.
Example: A layer can be converted to a smart object by right clicking on its layer and selecting smart object in the menu, at this point most filters can be used in a non-destructive way, in that it is very easy to edit the filter later on. This layer can then be rasterized by using the same menu, which renders that layer as a bitmap image, anything that was in that layer is no longer editible in the sense of quick editing, for example text would be just an image not live text.
If you merge the layers or flatten the layers, the same thing happens, all the layers become a single bitmap layer. Howerver if some of the layers are hidden or certain layers are selected, then other merge options are available, such as the ability to merge only visible layers or merge selected layers and leave the rest alone.
OK, I have gone into a fair amount of detail, if you have any questions let us know...

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