Not sure if you've already fixed this, but I was also running into this same issue with the latest issue and solved it!
Go to Settings > Apps > Default Apps
Under "set a default for a file type or link type", enter .psd
Click on the button that shows up and choose Adobe Photoshop 2025 as your default app again. Voila!
This was driving me bonkers since it completely kneecapped my ability to quickly visually browse for psds in file explorer, so I'm so relieved to have it fixed. Hope it's helpful!
I am also having a similar issue. It happened on all my computers since updating to the latest version. All my PSDs have the Photoshop icon for the icon, which I don't like. I've tried resetting the extension and changing the defaults but it always falls back to the Photoshop icon. Everything appears fine in the registry and when inspecting the extension with a third-party app. It just always pulls the wrong icon and calls it a "PSD File" instead of "Adobe Photoshop Image". Something is wrong with the file type association.