Photoshop is working correctly.
100% zoom in Photoshop means 1 screen pixel for 1 image pixel. It is not a physical size. That means with a high resolution screen the physical size on screen will be smaller.
Other apps zoom to 200% without telling you
To see your image as other apps will show it - zoom to 200%
You have a Hi Res display. So your pixel density is 2-3 times greater than an average display's density.
10%% looks tiny because on your display it is tiny.
Go to Edit > Preferences > Interface.
Change UI scaling to 200%. Restart Photoshop.