Photoshop 26.9 (just updated), macOS Sequoia 15.5, Intel MacBook Pro.
1. Drag with text tool to create large text box
2. Type a few characters, so most of the text box is empty
3. Select Type->Convert to Dynamic Text
4. Try to click and move the bottom transform handles
Expected: able to click and drag to resize bounding box
Actual: cannot grab handle and text box is deselected
5. Change to Move Tool
6. Double-click text box to select and switch to Text Tool
7. Try to click and drag transform handles.
Expected: able to click and drag to resize bounding box
Actual: cannot grab handle, text box is deselected, tool reverts to Move Tool