Suddenly unable to open files from LR to PS

My LR and PS have been working perfectly for over a year and now all of a sudden when I choose to edit files in PS, PS opens but no files open. Then if I try to drag the files in it shows me my raw files without my LR edits to open in PS, which I do not want.

I also got this message when opening LR today, although the issue started before this.

Another odd thing, I see my LR catalog 'Lightroom Catalog 2-v12.lrcat' now on my desktop. I have been saving all images and the catalog to an external HD. Not sure how this appeared here or why, but suddenly everything seems wrong.

Any suggestions? Thanks!