Edit in photoshop does not work LR CC 5.0, PS 2022, macOS Monterey 12.0.1

Although specifically for LrClassic these steps from: https://community.adobe.com/t5/lightroom-classic-discussions/p-unable-to-launch-photoshop-when-selecting-edit-in-photoshop/m-p/12497985 might help

Try the following steps in the exact order.

After each step check to see if PS will launch from Lightroom - do not do all five without checking between each step. 

Best steps to take in this order, when faced with this issue:

1. Verify Camera Raw is up to date 
2. Reset Photoshop Preferences
3.  Remove old installations of Photoshop
4.  Reinstall Photoshop (Current)
5.  Reset Lightroom Preferences
6.  Reinstall Lightroom (Current)

If the above does not restore the expected edit in behavior, then you may need to use Adobe Cleaner Tool to tidy up your Adobe installations and reinstall from scratch. Use this as a last resort.