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Smaller PSDs (5-6 mb) drag from CC library fine.
Larger PSDs (10-15 mb) convert to low quality PNGs when dragged in from library.
What am I missing?
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Larger PSDs (10-15 mb) convert to low quality PNGs when dragged in from library.
Just to clarify do you mean when you check the Link Info for the placed PSD the Links Panel is showing the format as PNG and not Photoshop?
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Yes.