Close Window not showing Up above the canvas on MacOS in Photoshop

I'm on the newest version of Photoshop (23.3.2) on a new Macbook M1 Pro on OS 12..3.1 and when I try to close a file (either hitting the X or keyboard shortcut) the pop-up window asking whether I want to close and save, save as, Cancel, etc is hidden underneath the image canvas. 

I only figured this out by hitting the esc key and seeing the close window briefly flash on top of the canvas.  Until I hit esc,  I can't type or do anything in Photoshop and only getting the keyboard beep noise when typing.  I can try to use the trackpad shortcuts to see all windows and it still doesn't show up for me to select it manually. I have to esc out and then do a save-as or save.  All of the Close options in the menu do the same thing with the pop-up window.

I've used Photoshop for 20 years and I haven't ever had this problem happen. I looked in the preferences to see if I accidentally turned something on/off that would address this, but couldn't find anything. I think it's a bug.