With LR Classic and the cloud based LR, the Develop module has never distinguished between raw files and picture files (JPEG TIFF etc). You edit both in the same way. The Camera Raw engine is working away in the background, but you notice no difference between editing both types of file.
Photoshop has always made a distinction and still does. Camera Raw is a plugin for Photoshop. Open a raw file in PS and a new window opens which is the Camera Raw interface. You must use the controls in that to process a raw file, not the standard PS editing tools.
What has changed in the last 12 months or so is that the Camera Raw interface in PS has changed dramatically. It now resembles the LR tools almost entirely.
The other thing that changed is the ability to open a picture file in PS eg. JPEG in Camera RAW and edit using those tools instead of PS tools.
What works best will depend on the users own workflow and how confident they are with each product. I learned editing in PS Elements and so am used to working with layers and masks, and find the LR "brush" system a little complicated. So most of my editing is in PS, although for RAW conversion itself I still favour Silkypix DSPro.
Pictures below of the LR Develop module and the PS Camera Raw interface. For those who have not used PS for a while note the big change in the look and how it resembles LR controls.
Last edited by pschlute; 05-09-2021 at 10:59 PM.