Camera RAW is opening perfectly exposed files and they are all washed out

Ok, update.  I opened the same files in Photoshop non BETA release and everything looked fine. I noticed that in that version, it still had the preference checked for enabling precise color management for HDR displays.  I went ahead and turned it on again in the BETA version and to my surprise the colors are all back to normal.  I guess ADOBE fixed the bug with the precise display and created a mess with the people using the workaround.

I’ve got the same problem but it is far more extensive.  This is happening on every file I open in Photoshop. I tried updating to the latest beta and it is still happening.  I already had precise display for HDR turned off.  It happens to PSD’s, RAW Files, and JPG’s.  Here’s an Example.

I tried changing my monitor profile and that only made it worse.  Everything is washed out.  also, it looks fine in Lightroom.

the same files open fine in 27.8, then your RAW files are not the problem. This is almost always a Camera Raw preference or color setting that changed with the update.

Plz check here is what I would check first.

Open one of the files in Camera Raw and look at the Profile at the top of the Basic panel. Make sure it is set to Adobe Color or your usual camera matching profile. If it switched to something like Adobe Neutral, the image will look flat and washed out.

Next go to Camera Raw Preferences and reset them. Updates sometimes corrupt or reset preferences and that alone can fix it.

Also check if HDR Display is turned on in Preferences. If your monitor is not properly calibrated for HDR, images can look faded. Turn it off and test again.

If it still looks wrong, temporarily disable Use Graphics Processor in Photoshop Preferences under Performance and restart Photoshop. GPU issues after updates are very common.

In most cases, resetting Camera Raw preferences solves this exact issue...

Please try unchecking

Photoshop > Settings > Technology Previews > Precise color management … 

Photoshop > Camera Raw > Performance > Use Graphics Processor 

and restarting Photoshop – does it make a difference?