In this paper, we extend the slow divergence-integral from slow-fast systems, due to De Maesschalck, Dumortier and Roussarie, to smooth systems that limit onto piecewise smooth ones as $epsilonrightarrow 0$. In slow-fast systems, the slow divergence-integral is an integral of the divergence along a canard cycle with respect to the slow time and it has proven very useful in obtaining good lower and upper bounds of limit cycles in planar polynomial systems. In this paper, our slow divergence-integral is based upon integration along a generalized canard cycle for a piecewise smooth two-fold bifurcation (of type visible-invisible called $VI_3$). We use this framework to show that the number of limit cycles in regularized piecewise smooth polynomial systems is unbounded.