Transforming image does wierd things - transform doesnt retain image edges

Yea, its this system, that I have to use most, but at home I have RTX2060S and its the same. Did you tried the psd files? Your's were displayed normal? I have hard time believing that, unless its intel specific on windows. Hmm.. Anyway thank you for all the suggestions. As I can not eliminate the problem and I am able to repeat it on other systems, I would still say its a bug across multiple platforms, just dont know which ones yet.

As far as I see your system matches just about meets the minimum requirements. 

Your graphic card is very old and not powerful enough. I don't know if this could be the reason for your issue.

But you should update you graphic device driver, There's a update available.

You can also try to rollback to the previous version and check again.

I don't have another idea at the moment.

Here is system info (censored serial number and hard drive path - if its needed I will reupload)

and a saved photoshop file with the error: https://drive.google.com/drive/folders/1CZc7asdzsVSJFhgCjzdUZfLUplRjeYxZ?usp=sharing

... Does it not do it on your photoshop?

By @Juris5E78

I don't see this on my Photoshop. I can't also reproduce this.

Unfortunately you haven't given us any information about your system.

Please provide a copy of your 'System Info'. This can be get from the Photoshop menu item Help > System Info. There's a copy button in the System Info dialog. Press this button and paste the info into your next forum post.

What is interesting that is seems like is also using static xy coordinates not relative to image layer it self - if I rotate it, the affected adges change

Here is a video:

Tried everything, also tried on different systems - the issue persists: as soon as you put one point using SKEW at very hard angle, or sorta move it down - and then using scale (the one you extend one side) the picture goes into arc similar shape. It really looks like algorythm problem - somewhere calculating how much pixels to extend across a line, it looses some values and gets this logarythmic arc shape, maybe rounding problem?

Does it not do it on your photoshop?

Please try to disable the option to "Use Graphics Procesor" from Photoshop by going to Preferences, then Performance. Once done, quit & relaunch Photoshop to check if that helps.

If it helps, you can check out the steps suggested here:  https://helpx.adobe.com/photoshop/kb/troubleshoot-gpu-graphics-card.html

If the issue persists, you can try to reset the preferences of Photoshop using the steps described here:

Preferences in Photoshop (adobe.com)

Please backup your settings before resetting the preferences. You can check:

Migrate presets, actions, and settings (adobe.com)

If this all doesn't help, we need more informations aubout your system. Maybe you can post your Photoshop system info. In Photoshop goto Help > System Info and hit the copy button. Then paste the entire informations into this thread.