"Edit in Photoshop" images not updating on save

This is a new issue I have been seeing in the most current versions.

I am running on MacOS Big Sur Version 11.2.3 on a late 2020 Macbook Air M1.

I have the most current CC (5.4.2.540), XD (38.0.12.13), and Photoshop (22.3.0).

Some time around when Photoshop was changed over to the version to support the M1 ARM chips I noticed that it wasn't behaving well with XD, but haven't had an opportunity to really try it until today. 

What I am seeing is that if I take a masked image (drag and drop image from browser to shape in my design) and "edit in photoshop" it opens ok and allows me to edit as I normally would, but when I save it never pushes that update to the XD object. 

My initial issues when the update first launched made it so I couldn't even open Photoshop using the "edit in photoshop" option and I had to roll back the version of PS. I updated it back to the current version and noticed that new problem.

This is a process I have been doing with this machine and older versions of the software for awhile.