Image bounding box showing when compositing

Question

Can someone please tell me what I'm doing wrong. I'm trying to do some image compositing. I have a background layer and 2 other layers where the subjects are on a transparent background (created by using select subject, select and mask and saving to new layer with mask). All good so far, but when I transform these 'subject' layers by scaling or rotating using transform, the bounding box is showing, see attached.

I've tried using the background eraser tool on the edges of the layer, and I tried applying the mask to the layer but I just can't seem to resolve this.

Photoshop 23.5.1

Chuck Uebele · Answer

Sounds like the image has been cropped with the delete cropped pixels unchecked. So there is some image outside of the canvas and when transformed, it brings that into the visible part of the canvas. Use delete cropped pixels, when cropping, or, after you make your selection, and apply your layer mask and transform, you will need to mask out the area that was outside the canvas but is not inside due to the transform.

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