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When I try to copy artwork from illustrator to photoshop there used to be a popup window that would say "Paste as: smart object, pixel, path, or shape layer" I no longer get that popup and they automatically paste as just a smart object. there is also the issue that when the object pastes both programs are set to rgb but the color of the pasted artwork gets distored and any opacity setting i have on the artwork (such as making a layer multiply on top of a solid color) dissapears.
WHAT'S GOING ON??
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What operating system, version of Photoshop and Illustrator are you using?
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I get the dialog box pasting into Photoshop CC 2019.
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Can you post a screenshot of your Photoshop document?
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Seems to work here on Catalina using the same photoshop and illustrator versions you are.
If you try a simple rectangle shape, does that make any difference?
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I would reset the photoshop preferences by going to Photoshop CC>Preferences>General, click on Reset Preferences On Quit and restart photoshop.
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I tried this on both programs it still doesn't fix it.
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Have you updated photoshop to 20.0.7 or installed the newly released photoshop cc 2020 21.0.1 to see if that solves the issue?
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yes, I have updated, that did not fix the issue