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I know jpeg files work with generative fill but so far I cannot get raw files or psd files to work.
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The Generative Fill tool supports a wide variety of file formats, including JPEG, PNG, BMP, and PSD. Not Raw formats to my knowledge though.
What happens when you try using PSD files?
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If an image is open and the layer data is a standard pixel layer (not an embedded or linked smart object) then Photoshop doesn't know or care about file formats, it's just a document with pixel data in a layer.
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What he said. It just works oppn the pixels inside the selected area. I'm trying to be specific here, because it doesn't matter if the top layer is a Smart Object or Adjustment layer. It just gets on with it.