Without getting too technical, no, you don't "need" to update Photoshop. But the version of Photoshop you are using is only compatible with older versions of Camera Raw. And the Camera Raw you are using is not able to interpret all of the Lightroom adjustments. So you need to use the option to render using Lightroom. That will cause Lightroom to create a TIF or PSD image, depending on your Lightroom preferences for external editing, and will send that file including all of your Lightroom adjustments to Photoshop. If you had a newer version of Photoshop the creation of that TIF or PSD file with be postponed until the end of the Photoshop session. I know, I'm just making it more confusing. But just use the render using Lightroom option and you will be fine.
No that helps thanks so much!!!