When I insert a shape and click on anywhere to unselect shape, this extended outline appears. Help

[najabatk11484567]

[Mylenium]

Check the appearance panel. You may have an effect applied or accidentally dialled up the rounded corner value which would inflate the bounding box.

Mylenium

[Monika Gause]

Please do also check out the layers panel. Anything suspicious?

If that also does not solve it, maybe reboot the computer?

[Ton Frederiks]

Is Preferences > General > Use Preview Bounds checked? And has the object a stroke?

[Kurt Gold]

Can you please share this Illustrator file, so one may have a look at it?