That is the point. The SMC, ISL6259, and battery communicate on that line by dropping it from 3.42v to 0v by shorting to ground to create pulses. Those pulses are the communication. The SCL and SDA line should have something like 0.441 diode mode measurement to ground on them with red probe on ground.
Check PPBUS_G3H, if it is 8.16v and the pullups & traces are fine, most likely bad SMC.
Check PPBUS_G3H, if it is 8.16v and the pullups & traces are fine, most likely bad SMC.