When uploading from Adobe Creative Cloud Desktop, PSD files are not converted to Cloud Documents (psdc) if the file extension is capitalized.
Please check the following for details as reported by users in the Japanese community.
https://community.adobe.com/t5/creative-cloud%E3%82%B5%E3%83%BC%E3%83%93%E3%82%B9-discussions/%E5%A4...
We also recorded the following video of the phenomenon taking place.
https://clipchamp.com/watch/VlE8RVbOvh7
Windows 11 Home 22H2(Japanese version)
Adobe Creative Cloud Desktop Ver 5.510.0.573
I hope you can improve this phenomenon because there are cases where we have to deal with old Photoshop files that have capital letter extensions.
(Translated from Japanese to English by DeepL)