I think there's a lot of disconnect going on
The writers are giving P dialogue as if she wants to change his whole identity / personality - yet it's clear by her other dialogue, and how she is with Raghav in general, and how she's been with him thus far, that that's not the case.
So no, she doesn't want to change him. His illegal activities do not solely define who he is. He is so much more than that and a person stopping one activity - does not completely diminish who they are.
She doesn't want to change all of who he is. She just wants to stop the illegal business. She had no issues with his gun, his drinking, his rowdy behavior, etc. So why are they giving her some of these statements implying he needs to change everything -idk. Because to me, my headcanon for her character is that she doesn't want to change everything anyway.
Raghav is taking it though as if he cannot get by without illegal activities - but it's really that he just doesn't want to be told what to do. He wants to do things how he thinks they should be done - he's always been this way. Although I agree with a lot of what he said, and from his POV he's right about giving money importance, what no one is saying out loud (bc then how would there be drama) is that running a business fully legally does not mean you are no longer giving money importance, nor are you going to be unsuccessful.
They're talking in circles because neither of them are saying the most obvious thing - doing business legally does not mean your business will suffer. He'll just have a smaller profit margin - who cares - find other sources of income. It's 2021. Diversify.