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I think I was able to solve it by unchecking the graphics processor under Preferences - Performance.
Now my question is - Can I leave it unchecked? What will happen ?
Thanks!
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Hi
If you leave it disabled you will lose some functionality that requires a GPU
https://helpx.adobe.com/photoshop/kb/photoshop-cc-gpu-card-faq.html
Re-enable the GPU then try enabling this option in preferences and restarting Photoshop
If that dosen't help try unchecking this option and again restart Photoshop
Also make sure that your GPU driver is up to date