Check your photoshop settings in the Lightroom Preferences dialog, External Editing tab.
Thank you for your quick response. However in the external editing tab, the file format is indeed PSD. It did not have this problem until the recent update. Actually, in the lightroom preferences dialog for external editing, DNG is not even a choice. So I have no idea where this is coming from or how to change it.
Once again I thank you for your quick response and hope that you can suggest other things for me to to do to correct this problem.
Quote "In the past when I create a pano in Lightroom (via Photoshop) it would be saved as a psd. Since updating to LR6, it is now being saved as a dng file. How do I continue to save as psd?
In the latest version of Lightroom version 6 there is a new feature whereby Lightroom can create pano's from two or more raw camera files without the need of Photoshop. When you use this new feature Lightroom will create a DNG file and place it alongside of the raw files in the same folder. Is this what you are seeing. Or are you using the "Edit in" function above the Photo Merge function.
Thank you so much! This answers my question and solve my problem! I hadn’t noticed that when I use the photo merge that I was actually going into Photoshop.
I appreciate your answer and your time.
Quote "I hadn’t noticed that when I use the photo merge that I was actually going into Photoshop."
No you are not Lightroom is doing the Photo merge and creating the DNG file.