What engine is that? Have you measured the resistor ohms of the smoke elements? MTH PS-1 smoke does have an AC ground, but it feeds the PS-1 smoke electronic board. Your smoke does not have the traditional PS-1 board. So it is getting power from the CV board for smoke fan and it looks like the rectifier also for elements.
The CV board is already grounded with the brown wire to the center mounting screw of the CV board. So you need to remove that brown wire from smoke unit. It looks like that is on DC side of the CV board. Not 100% sure, but looks that way and needs to be metered.
Either way Johns advice on the Smoke PCB mod is right, but you better make sure the individual elements are 16 ohms, or the parallel connection reads 8 ohms. I would remove the brown and orange wires to the smoke unit and trace where they wind up. The Smoke switch on the engine comes out too and is part of that circuit. G