How to change Photoshop CC 2015 Smart Object settings to auto-embed?

Since the cloud library integration from CC 2015, smart objects in photoshop are by default linked-via-cloud-account (pardon the terminology, I don't remember it specifically). Previously all smart objects were auto embedded, thus nested smart objects could be opened/edited from the parent file.

Sure, you can embed a link smart object by right clicking on the layer, but that is tedious and not scalable.

Are there any smart object settings in Photoshop that I'm missing?