Symptoms
A typical scenario when using the SharePoint UI to create only service objects for new lists or libraries would be the following:
-Create the new list/library
-Go to K2 Site Settings and go to the smartobjects settings page
-Check the boxes next to your new items in the list
-Check the box at the bottom of the page that says "Only create the Service Object Instance for the specified items, lists or libraries.
You then click the "create" button, and then it brings you to another page where you must click "create" again for SharePoint to continue to create your service objects. When SharePoint confirms that it is done creating the items, you look in the SmartObject Tester and see that there are not service objects for the items you selected in SharePoint, and that all of the smartobjects you have created against any custom lists in your site are now duplicated.
Diagnoses
This is due to the query string sent from SharePoint to K2 in order to create those new service objects is too long. It reaches a limit and then cant include the new items because the same query string includes the other lists and libraries that already have items created against them in the same string. So effectively SharePoint "cant" add the new items to that query string because it runs out of room.
Resolution
This behavior has been logged as a bug and attached to the following bug item:
Bug 520186: K2 Site Settings - SmartObject Management - K2 SmartObject Site Lists and Libraries : A site with a larger amount of Lists and Libraries fails to add new service Object. Query string exceeds maximum length
The current workaround to be able to add the lists/libraries needed as service objects is to go into the Smartobject Tester, expand the corresponding SharePoint V2 Service Instance, right-click it and choose "Edit Service Instance". Then in the Lists field of the Service Instance, add the list or library name you wish to have a service object for and click Update. This will create the service object successfully and prevent the duplication of existing smartobjects created against lists for the site.