The difference between .xmp and .lrtemplate files lies in their format and compatibility with various versions of Adobe Lightroom.
- .lrtemplate files: These are the older preset format, mainly compatible with Lightroom 4, 5, and 6. The .lrtemplate files are generally found in the "Develop Presets" folder within the Lightroom app.
- .xmp files: This is the newer preset format introduced in Lightroom CC (2018) and Lightroom Classic CC 7.3 and later versions. The .xmp files offer better compatibility and synchronization across multiple Adobe Creative Cloud applications, such as Photoshop's Camera Raw. These files are stored in the "Settings" folder under the "Camera Raw" directory.
When using 123presets Lightroom Presets, it's essential to choose the appropriate file format based on the version of Lightroom you're using. If you're using Lightroom 4, 5, or 6, you should use the .lrtemplate format, while for Lightroom CC (2018) or Lightroom Classic CC 7.3 and newer, the .xmp format would be the right choice.