Unfortunately, that's not an issue. Lots of storage on both the drive PS is installed on and the one the files are on. The previous suggestion of going back one update resolved the problem though!
update. As it turns out, going back one version didn't fully resolve the issue. It seems it had to do with my Lightroom library being located on an encrypted drive. Odd, because it was always on that same drive. Looks like the update caused Lightroom to no longer be able to process from an encrypted drive (I could use Lightroom to open the "original" files (tiffs, jpegs, etc) no problem but as soon as there were Lightroom edits or raw files or the layering of multiple files, Photoshop froze). The problem was only fully fixed when I transferred everything onto a non-encrypted drive.
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