selecting "edit in" - Camera Raw doesn't open the file....the file will open in regular PS window.
This is the default way that Edit-in works for raw images. Nothing is wrong with this.
When both Photoshop and Lightroom have matching versions of ACR, Photoshop "understands" that Lightroom is the raw editor and the Camera Raw dialog (ACR) is not needed, so you do not see it open.
If you go [Edit In > Open as Smart Object in Photoshop] then the layer thumbnail in Photoshop can be double-clicked to open Photoshop's ACR and adjust the image.
Victoria Bampton's flow diagram illustrates this for matching ACR-
Jim Wilde also explains in this thread-
Read in the second last paragraph starting- "In an environment where there IS compatibility of ACR....."
Thanks and makes sense. Puzzling part was why it initially behaved differently and all the .ORF files opened into Camera Rawwindow using the same selections.
Just reviewed the discussion link and it all makes sense now as my system seemed to be completing updates and its possible the versions were initially mismatched until all downloads were finished. Thanks very much for the answers...