I agree that 95% of any "slow" issues are due to the entry-level hard drive Apple used in 2012-2019 21.5-inch iMacs. You have exactly that drive, and it is running at half its normal slow speed of 70-80MB/sec. The external USB3 SSD drive option already mentioned is the most cost-effective way to improve performance.
It is not the processor nor the RAM. My daughter has the same machine and specs as yours but it was ordered with Apple's internal SSD option. It is as fast as stink.
There are a few minor things to consider:
1) Client-side VPNs are of questionable benefit at best and can slow performance.
2) There is some evidence that old versions of DivX can slow performance, and I found a DivX component that is older than your computer:
[Loaded] com.divx.agent.postinstall.plist (Not signed - installed 2012-03-16)
Other DivX components are from 2018.
👉🏻Apply Rule 125544-22 rev D : "If you use it, update it. If not, dump it."
3) Consider testing with the WD external drive disconnected. If you have a Photoshop scratch disk there, that will slow PS. The WD Elements is old and connecting at USB2 rates (480MB/sec). Your iMac has USB 3 ports rated at 5000MB/sec and ever faster ThunderBolt ports.