I have routinely hand off images to photoshop by right clicking ‘edit in’, have the preference set up as per your video and have had no issue until lately when suddenly the file no longer opens in photoshop. A psd file is created, photoshop is launched, but the new file is not opened. I had it set so that a psd file is created and put in the same folder as the original. In the past that new psd would open in photoshop and I did my additional editing, saved the file and all was good. Now I have to go to the ‘open file’ menu in photoshop and search for the new file and open it. Extra steps that are a pain and time consuming. Any thoughts??