Diagnosis
The 'Smoke' setting runs the auger on a very slow, intermittent feed. If it's running too hot, the controller's P-setting (feed rate) might be incorrectly calibrated from the factory.
How to Fix It
Manually adjust the P-setting. With the grill OFF, hold the 'Prime' button and turn the knob to 'Smoke'. Release 'Prime'. The display will show 'P-0' to 'P-9'. Turn the knob to 'P-7' (a slower feed for more smoke), then press any button to save.
If That Didn't Work
You might be using poor-quality pellets that burn too cleanly/hotly. Switch to 100% hardwood pellets with no filler oils. Also, ensure your grill is on a level surface so the pellet feed is consistent.
Heads Up
Pellet grills produce the most smoke at lower temperatures (180°F-250°F). On 'Smoke' mode, don't expect billowing smoke—it should be a thin, blue, consistent stream.