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Trying to add text but image goes pink and no text layer is created, can anyone help please?
Pink you say? Perhaps you are entering Quick mask mode somehow? Can you post screenshot with problem visible.
In general, solution for all weird problem is usually to reset preferences https://helpx.adobe.com/photoshop/using/preferences.html
Could also be that you have the Type Mask Tool selected instead of the standard Horizontal or Vertical Type Tool.
The Type Mask Tools create a selection after committing instead of actual text in the document area.
Left click and hold on the T icon in the tools panel to see the four type tool options.