Photoshop clipping does not work

You are clipping to a layer that fills the screen, so there is nothing to mask.

If you were to add a layer mask to 'photo layer' and fill have the mask with black, then you'd only see half of the baseball lad.

Your photo layer has a white and black border around the gray that fills up the whole image area.

Delete the white and black border around the photo layer so the boy's image will then clip to inside the gray area.