To start with RAW is RAW. That "In Camera" setting is for the camera produced JPG output. RAW is RAW sensor data with no "In Camera" adjustments included.
That is the way it is supposed to be. RAW is RAW.
@Just Shoot Me "pixel shift resolution" is not a jpg-adjustment. It combines 4 images into one single RAW file which quadrupples its usual size. RAW is not always RAW ;-)
@trshaner I've seen this article during my research. It basically says that the actual version of Camera Raw should support PSR at least for the Pentax K1 and that it seems to work fine for still images. That's why I'm asking if there is a workaround for the K70.
Unless I am mistaken the Pentax K70 camera is not yet supported for the .PEF RAW files by Lightroom.
At least it is not in this list: Cameras supported by Camera Raw
JPG and normal DNG files would work.
However, not yet for those DNGs using the PSR mode.
(I based this on looking at what Lightroom supported for Pentax K3-II camera that also has PSR mode, the PSR specific support was added later)
Support may come in the next minor LR release or one after that. All depends on info being available from Pentax to Adobe.