@ItsJustCurtis In his post he's not talking about the texture files, he's talking about ytd files when extracted becoming .psd files.
This is now clear to me given OpenIV does not offer an option for .psd as an export. OpenIV will not offer .psd to extract a texture, and will not offer any options if you extract the full .ytd file or export to open formats.
What he is describing is that when he extracts a .ytd from OpenIV and saves it (to his desktop for example), the file is now .psd, or at least the extension is now .psd.
I don't understand how that can happen unless he created a file association between ytd and Photoshop.
I doubt the file is .psd, probably still .ytd and if renamed to .ytd would be editable.
Have no idea how this issue was created by OpenIV unless it was Windows:
Edit or Open, Windows ask how, User says Photoshop, WIndows asks "always use this app", User says Yes. - You now have a file association for ytd with Photoshop.
Overall this doesn't make any sense to me. OpenIV does have file associations in its Options, but this has nothing to do with Photoshop and it is only mean to associate a file type with OpenIV, not with any other software. Similarly, there is no option to save textures as psd