I have a Lutron Skylark model 600-P dimmer that smokes and causes a
burning smell when it is turned on.

I took the switch out and found that the smoke is coming from inside
the switch itself; the external wiring connections are solid.

I did not take apart the switch itself to inspect the connections
inside, figuring that those connections are pre-configured.

Am I simply looking at a switch that has gone bad, or is there
something else that could be wrong?