Adobe does not use Apple's Raw conversion library. They use their own. So Apple's list of supported Raw format is relevant to what you'll see in Preview, Finder, etc. – but you need to look at Adobe's Support articles when it comes to Photoshop and other Adobe applications.
Adobe – Cameras supported by Camera Raw
It appears that Adobe does support the Nikon "Z 5 2"
- Raw image file name extension: NEF
- Camera matching profile available: Yes
- Minimum Camera Raw plug-in version required: 17.3
- Minimum Lightroom [cloud] version required: 8.3
- Minimum Lightroom Classic version required: 14.3
Unfortunately, you are running Monterey. Adobe has a policy of supporting only "the most recent three" - of which Monterey is not one. And while you still can run Photoshop on Monterey, Adobe's support page says
Adobe – Photoshop system requirements
"Adobe Camera Raw (version 17.0 and later) is not supported on macOS 12.x; we recommend updating to a later version of the OS for ACR support."
What is the hardware model year of your 27" iMac? That will determine if you can upgrade to Ventura (or better) – which is what you would need to do to run a version of Adobe Camera Raw that might support the Nikon Z5 II.