Photoshop is primarily a raster-based image editing software, and it is not the right tool for creating digitized logo files directly for embroidery machines. However, it can be part of the process in specific scenarios.
Digitizing a logo for embroidery involves converting a logo design into a machine-readable format that an embroidery machine can understand and stitch out accurately. This is typically done using specialized embroidery digitizing software, not Photoshop.
Embroidery digitizing software allows digitizers to create and edit vector-based embroidery files (usually in formats like .dst, .pes, .exp, etc.) that contain instructions for the embroidery machine to follow, determining stitch types, direction, density, and other essential settings.