If you "Edit Original" Lightroom is passing the TIFF file to Photoshop without Lightroom adjustments.
Remember- Lightroom adjustments are only contained in the catalog- not applied to the original TIFF.!
If you "Edit a copy with Lightroom adjustments" Lightroom embeds the adjustments then opens the 'new' copy TIFF file in Photoshop- which you then Save and it appears back in Lightroom.
Did you notice in your video that the 'over-exposure' you applied in Lightroom does NOT carry over into the Photoshop image?
Photoshop CC 2015.0.1
Thank you Wobertc, but I think you miss understood my issue. After I save the file in Photoshop, and I go back to lightroom, all of my lightroom adjustments reset. So if I have some adjustments in LR, and then I want to go and clone out a zit, and then I return to lightroom, and all of my LR settings are back to default. Somehow the act of saving in PS resets the LR adjustments.
This is a known issue. We are fixing it.
Is there a work around? or know which versions of LR and PScc will work together?
Okay, since this is a known issue, I had to look for a workaround. It's not perfect but this is how I solved it.
Instead of using the "edit in Photoshop" quick link, use right-click>show in finder> then open from finder. After saving in photoshop, go back to lightroom, and sync.
Hope this helps.