This happens from time to time but I have never been able to figure out why. But sometimes when I do a smart uv unwrap, the uv’s will get forced to unwrap inside the texture instead of being proportionate to the object itself.
Any ideas why this happens? I have messed with all the settings. Usually it fixes itself. I will just work on something else and come back to it later and it works properly again.
Project from view works fine. But I am showing this to convey what is happening during smart uv project.