This is a really hacky PS approach, unfortunately. It’s basically taking a pixelated rasterized selection and converting it into a vector shape, so the shape vector is made of really compromised data.
Another tool I use is Figma. Figma is all vector-based, it’s a massive product with a huge reach. You can copy and paste all sorts of vector data directly into it, as well as dragging vector files in (AI, SVG, etc).
If I copy a curve in Rhino and paste it in Figma, it pastes a screenshot of my Rhino viewport. Not the actual SVG data.
I believe Rhino would dramatically benefit from an incredibly basic CopySVG command which could be run on any curve. You already support this through saving/exporting to AI/SVG formats. Could we just get a handy command line for this to skip the annoying process of creating temporary junk files?