When I set the image to use RAW as the default in Photos on my Mac, then I choose the "Edit with Photoshop" option, it opens in Photoshop but as a JPEG file. When I view the info from the photos app on the Mac is correctly shows it as a CR3 file. I am using Creative Cloud and all apps are up to date including Camera Raw.
This is driving me crazy! I checked the ACR preferences and disabled JPEG but tht had no affect. I must be mssing something. If I copy the CR3 file directly from the SD card and open it with Photoshop, that works.