PSD files won't overwrite - they add numbered file extensions instead.

When saving PSD files, PS won't overwrite. It creates numbered filename extensions. E.g. "FileName-1.psd" then next time I hit Cmd+S it will save "FileName-2.psd" etc (without opening any windows or dialog boxes - just appears to be a normal overwrite). But now the folder the file is in has 9 versions from each time I saved the file in a 1 hour timespan. Today I had to scroll through to find version 9. Trashed the other 8. MacBook Air on Catalina with all latest updates. I store all said files on Mac's iCloud. Incidentally this problem began exactly when another issue began... I now cannot directly open any PSD files from within Photoshop. Have to go to Finder then "Open With..." to bring them up in PS. Suggestions for either issue?