Powder vs. extract
Grinding a dried mushroom into powder is the simplest way to put it in a capsule. It is also the least concentrated — most of what makes the fungus interesting is locked inside cell walls that your gut cannot fully break down on its own.
Hot-water extraction does that work first. Selected water-soluble components are pulled out of the raw material and concentrated, so a smaller daily amount can do more.
It is not a shortcut and it is not free — it is slower, it costs more, and it is part of why Narasana is built around extracts rather than plain mushroom powder.