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I consider this a bug. I have a composition, with a live text layer, I save a frame as Photoshop Layers. I open up the file in Photoshop, and the text layer is no longer live and editable. This is ridiculous. Is this a suite of software or just some random grab-bag of programs bundled together? Adobe, fix this in the next couple weeks, and then send me a certificate for pointing out a great improvement to your software. Thanks!
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You can convert Photoshop Text to Editable Text in After Effects. It does not go the other way because After Effects has a different text engine. There have been ongoing feature requests for a long time for all Adobe apps to share the same text engine. This is not a bug.
The only workaround is to add a new text layer in Photoshop and then convert that text layer to an Editable text layer in After Effects. Unfortunately, when you Convert PS text to editable text, you lose the incompatible text tools that are available in Photoshop.
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Hope the suggestion above helped.
Feel free to reach out. Moving this thread from Bugs to Discussions for now.
Thanks,
Nishu