Photoshop 27.0 'Place Embedded' Only Loads from Cloud — How to Use Local Files?

So I've just updated photoshop to the most recent 27.0 version after a long time using photoshop 2023. The place embedded feature seems to be very different, and I can only place stuff from the cloud, not just images from my own device. Is that a design choice, bug, or how to I get around this? It feels really inconvenient to have to leave the app to open the file explorer, and drag and drop something