You need to click on the “Use Smart Objects” checkbox in the SPA batch settings. SPA 7 always used smart objects. SPA 8/9 don’t use the smart objects by default because it speeds it up and uses less scratch disk by adding the rasterized layer instead of editing the smart objects. If you are using duplicated smart objects then you need to make sure to check that option on before starting the batch. I made this optional just for this use case.