PSE now converts Adobe RGB RAW files to sRGB (potentially degrading the image file?)

My original PSE 2021 has maintained my RAW files' Adobe RGB profile with the Edit/Color Setting set to "Always Optimize for Printing", until recently when I had to re-install it. Now it converts my RAW Adobe RGB files to sRGB. This, I assume, will degrade my image files, even if I convert back to Adobe RGB right after the ACR conversion.

Question 1: is my assumption about degradation correct?

Question 2: is there a way to avoid this degradation?

Question 3: I know PSE 2024 does the same thing; how about PSE 2025?

Question 4: why would Adobe dumb down PSE?