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I have not locked the layers, the only locked layer is the background. Here is a screenshot as requested. Any help is appreciated.
OK, it sounds like you know what you are doing. Let's be doubly sure and select the Princess Corrine layer and make sure none of the lock icons are active.
To be fair, locked layers should still be able to move up and down the stack. Are you trying to do that by dragging, or using the shortcuts? If dragging, then try Ctrl [ (down) and Ctrl ] (up). If still no luck...
Is Photoshop otherwise working normally? i.e. is it frozen?
Have you tried testing with a new document?
Have restarted the computer and Photoshop? Obvious I know, but we have to ask.
Have you tried saving the document and reopening it? If the document is corrupted it might not let you save it, or if it does save OK, you might not be able to open it again.
Is your operating system in good health? Has Photoshop crashed or not closed correctly (maybe needing you to shut down the computer?
You say you are unable to move layers, which I take to mean the layer contents. While you can move an object using Free Transform, you would normally just use the Move tool (shortcut V). Does that work for you?
If you have tried everything, and Photoshop appears to be working OK, then we might be looking at initially resetting preferences, and if still no good, reinstalling Photoshop.
Using Ctrl [ & ] does work to move the layers up and down the stack, but I assume you can understand that I would prefer to use my mouse if possible as it's faster for my workflow.
To answer your questions:
It isn't frozen, it is functioning as normal other than not being able to move objects with my mouse.
I opened another blank document and embedded an image using File > Place embedded and other than the initial placement, I can only move the layer through hotkeys and not with the move tool.
I have restarted both, to no avail.
I did save and reopen but the file remains the same. I don't think it's corrupted, which is good, but I did open an older file to test the issue and found the same problem.
My system should be healthy. Photoshop hasn't crashed in a long time (I can't remember when last, probably May). My computer is low on memory/storage, but I outsource Photoshop disk space and storage to a WD 2 TB hard drive. Here are the settings I currently use.
I just went to upload a video to my Google Drive to link it here, but I now seem to be experiencing the same issue outside of Photoshop, so it must be a computer issue. I cannot drag and drop files.
Here is the link regardless: https://drive.google.com/file/d/1neVllOtd0et1C9sQtqNe619FvcIJI_SK/view?usp=sharing (red circles indicate left clicks from my mouse, blue indicates right).
I wonder if it is to do with Auto Select (in Options Bar). Photoshop might be forcing a different layer to be selected so that the layer under your cursor does not respond. Hmmm... just tested that and it made no difference.
There's an an old thread from four years ago. In fact I found several links from other people with the issue, but I had not come across it before. Some people think it is to do with plugins they had installed, but another found that this setting in Panel Options fixed it for him. I have always worked with it turned on AFAIK
A couple of things to try, but please let us know how you get on.
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