In older versions of Photoshop (before photoshop cc 2015, latest update)the app used to create smart objects from pasted paths out of Illustrator. When I wanted to edit the Paths (double clicking on the smart object in PS) Illustrator was opened and I was able to simply adjust the paths. After saving the PS Smart Object got updated. Pretty simple, pretty cool.
Now when I paste paths form Illustrator into photoshop, the app makes some kind of cloud smart object, with a little cloud icon before the layer. If I want to edit my pasted artwork, by double clicking, I get an error something like:
This element can't be edited in Photoshop..
(I actually get the german error)
I can't believe its not possible to paste illustrator artwork in Photoshop anymore as well as not having the opportunity to change the artwork afterwards.
I have the latest CC update on both programs, and I tested your issue, and I believe the problem lies in the "Add to my current library" option when pasting:
When that box is checked, it behaves exactly as you described. But if you uncheck the box, it uses the old behavior that you're used to.