Photo pixalated after editing in PS

I often do some basic adjustments in LR, then use the "edit in PS" tool...do my fine editing and save back to LR. I've done it this way for years. Today when I tried to do it, the output was very pixalated/blurry. I even went in and exported at 300dpi/short side 2000px just to make sure. Non edited pics export just fine.

Here is an example of how it comes back to LR after editing in PS. Any known problems? I did notice it opened in PS2023