I came across a problem when Photoshop will open JPEG images as RAW recently, while stitching photos using Brenizer Method in Photoshop.
After playing with new Photoshop CS6 Camera RAW, my Photoshop decided to open some of my JPEG images as though they are RAW images. That also kept adjustments I used when playing with the original RAW files.
When trying to open JPEG file in Photoshop, some showed up as JPEG, while others as RAW. Opening them individually, and selecting JPEG as a format from drop down menu, works just fine. But when selecting multiple, or using Photomerge, opens those JPEGs with Camera Raw settings.
To ‘fix’ this. Navigate to Photoshop -> Preferences -> File Handling and Click on Camera RAW Preferences. Under JPEG and TIFF handling, click on drop down menu and select “Disable JPEG Support”. Hit OK to save settings and now those JPEG files will behave as they should.
Hope this helps.