Talk about over-processing - Never seen this before

I’ve used Topaz products for a long time and have always been happy with the results. Just bought a new camera and took some test shots. Also happened to update PhotoAI to the latest version and wow is this bad.

First picture is the raw image with just Auto tone done in Lightroom Classic just to get something that looked OK. Very noisy as you can see. Ran it through PhotoAI and it auto selected Noise reduction and sharpening. It smoothed out all the fur on the cat. Never done that before. What’s up?

I would say that it is not a very noisy image. A screenshot showing the Raw Denoise panel settings would help determine what’s going on (also your Raw Denoise preferences).