Raw photo contains more data i.e pixel. But we don’t necessarily need all those pixel information to see the image as it is. So converting it to JPEG format removes those unnecessary information. As a result, image size also becomes smaller. Those removed information while converting to JPEG are not recoverable. That’s why its called lossy compression.
Since raw photo contains more data / pixel information, its preferrable to edit. Its like having more pixels to play with contrast, highlight, lighting, color etc resulting in more detailed, cleared edited image.
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