Solved the mystery after a Google search, and better understand previous post. Photos ingests as stacked images, with jpeg on top of raw. If you don't open image the option to use raw will be grayed out in edit.
double click image. At top of screen you will see jpeg in a box. Then click on edit on upper right. Then click on edit on top menu and you will see raw option. I think Photos did a nice job in developing, even in auto mode for all the options.