Placed Image in Photoshop is larger than actual size, regardless of PPI

I'm currently experiencing a weird issue with placing images in photoshop.

I currently am trying to place an png that is 750x1334 and has a ppi of 72. This image has been exported from illustrator. The photoshop file's image size is 5000x3338 and has a ppi of 240.

When placed, the image becomes 1877x3338. I have the setting "resize image when placed" on so it fits the in the canvas.

When I try to place the same image with a ppi of 240, I get the same exact result.

I first thought that it had something to do with PNG not keeping track of PPI, which is an answer in this question. But then I tried it with jpg and I got the same result.

So what is going on? Is there something wrong with my Photoshop file?