It sounds like you are using iCloud to sync your mac and iPhone. Do you have "Optimize Storage" checked for Photos on your Studio? Is your Photos Library listed as your System Library-- in Settings>General or by quitting Photos and option-clicking on the Photos icon.
In Settings>General, do you have "Copy items" checked?
Here, "Use as System Library" is grayed out because it already is.
What happens exactly, rather than "cannot edit" etc? When you choose Edit, what happens? Does Photos quit? Does the picture pop up and won't edit? What do you see?
The things you list would be happen if you don't have the full sized images on your local drive, but rely on iCloud to help reduce the local storage load. Then Photos would try to download the full image so you could edit or print or export it. If iCloud isn't available, which it wouldn't be if this were not your System Library, then it wouldn't work.
Another possibility is that you don't have "Copy Items" checked and Photos has lost touch with your referenced files.
Let us know so we can go further...