I mean this with all honesty and no malice whatsoever.
It might actually be one of the best ways to work. LOL
On import, you are given the option for Smart Object (which I believe uses ADL) which will later open that photoshop smart object in Illustrator for easy vector updating. You are also given the option to import from the clipboard as a shape layer, so you can pull complex vector shapes and logos into Photoshop and scale with zero loss in image quality. Without it, the workflow here would be soooo slow.
Sorry if that came off as pontificating, I promise it wasn't meant to be.
Can you do me a favor and tell me if you can copy/paste a simple vector square from Illustrator into Photoshop and tell me if you get the Photoshop import box or the Illustrator error pop-up? I am using CC 2020 for both apps.