Frame Tool Bugs in Version 20.0

One of the problem is Photoshop Frames feature is  using place.  Place has always had an issues the Adobe has not fixed.    

In your preferences there is an option to resize when you use place.   The thing is the is not what the option does.   What that option does is if Photoshop renders pixels for the layers content and the pixels layer is larger then the document canvas  Photoshop will use the Smart object  associated transform to scale the object layer to fit on canvas.  Smart Object layer Pixels rendered by Photoshop can not be changed. 

The problem is  Photoshop Resized the placed image if the  file being place is has a different Print resolution.  Photoshop should not do  that degrades the image quality you do want that.  It might might be OK  if Photoshop was doing a content aware  scale to try the make objects in the image be the correct relative size. For as similar objects in the document.   When it come down to it the user is going to have the scale  placed images to the correct  scale for the composite being created if  object need to be in scale.

However, most time you will not notice the Image quality is degraded.  For if you place a image file with a low print resolution into a document with a High Print resolution Photoshop will resize the image up in size like 9x the layer will most likely be many times the size of the canvas but you will not see this.  Because the default preference is to scan placed image to fit on canvas.  So the layer you see has been scalded down in size to fit the documents canvas you do not see the image has been resized huge.  The bigger problem if you  place in a image with a high Print resolution into a document that has a low print resolution Photoshop will resize the object to like 1/9 its size.   The image severely degraded much of the detail you had in the print size file is lost the image has been resize way down in size.  Often you do not see this  for you are working an a low resolution image for the web and you would have had to scale the large print size image down to fit one a web page. You just did not have to do it.   The thing with the new frame feature if you had created a large frame the feature is designed not to scale up in size.  Additionally if it did scale the image up the image will suffer more image quality will be lost. Scaling you now very small image up in size.

This resizing problem as far as I know has always been in Place.   If you document and Place imago have different print resolution what you see may be  the artifacts the interpolation created.

Make sure your Placed Image file has the same print resolution  As you document you create a frame in so Photoshop will not resize you image.