Apple ProRAW image issue when editing

I am running Sonoma 14.1.1 and having an issue with DNG ProRAW images when choosing to edit. I can choose to edit using the photos app, or edit with Photoshop and in both cases the image once edit is chosen becomes less clear and slightly fuzzy with loss of detail. This happens too when I choose to export the photo from photos as a DNG file and then also try to edit with Photoshop the photos. There is a drastically noticeable difference in quality of the image. This appears to be the way the image is handles in the photos app itself. Even if I save directly from the iPhone to files, it does the same thing once on the Mac. Attached are some screen shot examples, but still clear to see the difference.