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I have recently updated to PS 23.3.2 and have had a few issues that have been resolved here and am hoping this one will be as well!
My normal workflow includes draging and dropping a saved watermark .psd file (which has a transparent background) onto a .jpg image and then moving it to an appropriate place. Since the PS upgrade this still works - sometimes. Only in about 30% of cases does all go well at the first attempt. Usually what happens is that instead of getting the 'transform' (I may not be using the correct terminology) function and being able to drag and drop, I get a 'marching ants' box within the .psd file when I drag my pen to move the watermark text over to the image file. It can often take 3-6 attempts to get the 'transform' to happen. The same thing occurs when I try to reposition the dropped wartermark text within the image. Changing the point where I try to 'grab' the text makes no difference.
I'm using a Wacom Pro Tablet but don't think that is the problem as I always get the correct movement response to the movement of the pen, it's just that mostly it is not the correct action response!
OS 12.3.1.
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I"m not experiencing that issue on a desktop iMac computer.