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This is what happend before un update:Photo in LR right click on mouse and choose to develope in PS.
When done in PS I click the "save" button and thet photo was automaticly back open in LR.
Now after an update I do the same but after click the "save" button I'm been asked to save the photo to the cloud or to a place on my Mac.
For clarity you don't save to Lightroom. You save to your disk and Lightroom adds the image to the catalogue.
The new dialogue is giving you the option to save directly to the cloud as a PDSC file. Just take the option save to a location on your Mac and tick the box so you don't see that dialogue again.