Symptoms
SmartObject Server environment Field not updating correctly when changing from one Environmentto another in the same k2 Server. When selecting a different environment from the Environment Library in K2 Studio, the SmartObject Server Field keeps the Default SmartObject Field set and doesn't change to the selected one.
Diagnoses
When an Environment Library is change using the Object Browser in K2 Studio, all values must change to the selected Environment Library. In this cases, the SmartObject Server field, wasn't being updated and it stayed with the information from the Development Environment Library Field.
Resolution
Setting the target environment to be the Default Environment Library in Workspace first and then switching to that environment in the K2 Studio Object Browser resolved the issue.
A TFS Item has been logged to address this behavior.