I recently updated to Photoshop 23.5.1 for an M1 Max MacBook Pro running macOS 12.6. I make quick animations/videos in Photoshop, and with a recent release the ability to import and embed video files (.MOV, .MP4) was added to Photoshop for M1 Macs. This latest update seems to break that functionality, as older files I have created open but the videos no longer play/function (they look like they have been "flattened" or rastered in the layers palette).
I first noticed this after updating to 23.5.1 and dragging in an .MP4 video, which resulted in an error message. reverting back to 23.5.0 does not display the same error and works as expected.
Has anyone else with an M1/M2 Mac running Photoshop 23.5.1 encountered the same problem? I feel like this is a bug/regression and one I hope is fixed soon. Thanks.