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Starting in ACR with 16bit selected then moving into the regular editing area and not sure how to save to a jpeg -- should I be changing setting back to 8 bit or stay in 16 bit. Where are my choices available in PS Elements 2022 to change this. Also do I need to save the huge PSD file or is the original raw file and XML adequate. Still figuring this out. Advice please.
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Nothing new in ACR. The jpeg format does not support 16 bits, that's all.
You have the choice to set the output of ACR in 8 or 16 bits from the menu on the bottom middle menu, or, once you have opened the file in the editor, to use the menu image > convert color profile.
The edits made in ACR are saved with the xmp sidecar file, however the edits made after opening in the pixel editor must be saved in 8 bits in your preferred format, jpeg, psd, tiff, png...