Thanks for the help.
I tried what you mentioned, but when I look at the photo that I "Saved To Files" it still has the RAW text on it. This is also confirmed when I access the photo from iCloud Drive on my Mac as the photo is still in the DNG format that RAW photos are saved in.
I just checked on iPadOS 14.5.1: opened a RAW in Apples Photos.
Saved to Files inside a local folder on the iPad and get a JPEG. Always.
The RAW is still in my Photos library at this point of course. And - depending preferences - this is synced to iCloud. At this point the new JPG is NOT in the photos library.
So after saving your Photo to let’s say the local
Downloads folder on your iPhone, you have to delete the RAW. Then you open Apples
Files app, change to
Downloads, select the JPEG and use the
Save Image from
Share. This will add the JPG to the Photos library and this will sync to iCloud (if defined).