Photoshop 23.0.1, auto-select not working with move tool

Photoshop 23.0.1

macos Monterey, 12.2.1 (recently updated)

What isn't happening:

When I create (for example) four shapes on four separate layers, then attempt to select one of the shapes by clicking on that shape in the workspace (not the layers panel), the object is not selected and no anchor points appear, the layer in the layers panel is also not selected. The only way I can select that object is to go to the layers panel and manually select it.

What I expect:

In the past when I click on an object with the move tool, anchor points appear and that object's layer is selected in the layers panel. This was a huge time saver.

What I've tried:

In the move tool optionss, auto-select is checked and "layer" selected on the tool dropdown menu. I have reset my preferences and restarted Ps, I also reset my workspace to essentials. None of these actions help.

Has anyone else experienced this? How do I fix this problem?