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When I drag a pdf into Photoshop and it creates a Smart Object - the image is very pixelated. The Anti-alias checkbox in the top bar is greyed out so that doesn't seem to be an option.
When I open the same pdf with Photoshop, at the same resolution, it creates a good quality image - just not a Smart Object.
Is there a setting I can change to make it work better when dragging in PDFs? I used to do it and it worked just fine.
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When I drag-n-drop a generic PDF into an open Photoshop document, it becomes an embedded smart object and the original file is a PDF, so when I edit the smart object it opens in the default PDF editor (Apple Preview, Acrobat Reader etc). The image layer "preview" is rasterized at the document resolution and before committing the place command, anti-alias is available.
Rasterizing a generic PDF to the same resolution values has the same visual quality in my tests.
So I can't reproduce your results.
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Yeah I can't figure it out. I can open a pdf with photoshop and it works well. Then drag the same pdf into the same document and there is a significant difference in quality of the image.
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Could you please post screenshots taken at View > 100% with the pertinent Panels (Toolbar, Layers, Options Bar, …) visible?