Hi all! Special thanks to our expert @Andrew Yoole and all others who provided sample images. The team is investigating this. In the meantime, you can use Camera Raw to render the images while opening them in Photoshop.
Go to Photoshop(macOS)/Edit (Win) > Settings/Preferences > Camera Raw > File Handling > Set JPEG to 'Automatically Open all Support JPEGs'

Thanks!
Sameer K