Smelling now works a little different and is a simpler than the previous version.
Now you press smell key to smell the closest creature to you. Pressing the key again will smell the next closest creature to you, and so on. Moving will reset this to smell the closest thing to you again. So if you want to continue to smell new targets, stop moving, then start smelling.
Update to Smelling
Source: Steam Community (opens in a new tab)