All edit in photoshop/layers/s,art object is grayed out.

After one of the most recent updtates, all edit in photoshop/layers/s,art object is grayed out.
I use latest version of both LR & PS on windows.
My OS is updated.

I am connected to creative cloud.

I saw this:
https://community.adobe.com/t5/lightroom-classic-discussions/quot-edit-in-photoshop-quot-grayed-out-not-working/m-p/13694574#M316718

and this:
https://community.adobe.com/t5/lightroom-classic-discussions/edit-in-photoshop-grayed-out-in-lightoom/m-p/11584544#M211560

I am sure the files exist on the hraddisk. "Show in explorer" takes me to the proper file location adn the files are there.

I recently updated my HD but all is working.

What can that be?

I also noticed that there in no PS version in LR settings: