Optimizing storage and photo editing

Hello JohnP9260.

Thanks for reaching out to Apple Support Communities. We see that you have questions about editing photos and videos with Optimized Storage turned on for iCloud Photos. We will be glad to assist.

Please see the following:

"What happens when you edit or delete photos

Your photos and videos are stored in iCloud in their original formats at full resolution. This includes HEIF, JPEG, RAW, PNG, GIF, TIFF, HEVC, and MP4 as well as special formats you capture with your iPhone or iPad, like slo-mo, time-lapse, 4K videos, and Live Photos. The photos and videos you capture with these devices are in HEIF and HEVC format. When you edit or delete photos or videos, it's reflected across all of your devices.

Edits show up on all of your devices

When you make edits in the Photos app on your iPhone, iPad, or iPod touch or on your Mac, the photo automatically updates across all your devices, including your Apple TV. So when you crop or enhance a photo from your iPhone, you see the changes when you access your library from your Mac. Your original photos and videos are stored in iCloud and you can go back to them at any time, and revert any changes you made."

Set up and use iCloud Photos

Cheers.

Hi JohnP9260.

Thanks for following up and clarifying. Next, we would recommend reaching out to support. Here's how: Contact Apple for support and service

Cheers.