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After I go into CC Libraries in Photoshop and import an image, I can't then free transform layers. I have to click out of Photoshop and go back in for it to work.
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Hmm. I can't repo off hand.
"I go into CC Libraries in Photoshop and import an image" - Are you dragging something from the Libraries panel onto the canvas? Can you be more specific or provide a screen recording?