Issue with Dragging Content Outside the Canvas in Photoshop

I recently got a new PC and installed a fresh version of Photoshop, but something in the settings seems misconfigured compared to how it worked on my previous setup.

Currently, if content within a layer extends outside the canvas, I’m unable to drag it back into the canvas. For example, when I paste an image and it is entirely positioned outside the canvas, I can’t move it at all unless I first enable Transform mode. After enabling Transform, I can drag the content, but this extra step was never necessary on my old setup.

Here’s the part I can’t figure out:

• I never had to manually select layers before, which leads me to believe Auto-Select was enabled in my previous setup.
• At the same time, I don’t remember being unable to drag content from outside the canvas, even with Auto-Select on. 
  
  

This seems contradictory because, with Auto-Select on now, I can’t drag content that’s outside the canvas at all. How was I able to move content outside the canvas before without manually selecting layers, if Auto-Select is preventing that?

I’m wondering if this is a settings issue or a change in Photoshop’s behavior. Could anyone clarify how to restore the functionality where I can easily drag content from outside the canvas without needing to enable Transform or manually select layers?

Or am I just going crazy and this has never been a thing... 🫠