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It used to be so easy, you'd just toggle that little button by the text. Now, every time I try to change the size on the text box, it will only resize the text. All the answers I see are for older versions of Photoshop. How do I do this in PS 2023?
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If the text cursor is active in the text container, dragging a text bounding box handle scales the container, not the text.
If the text cursor is not active in the text container (and it has a bounding box because Edit > Free Transform was chosen), dragging a bounding box handle scales the container and the text together.
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In addition to what Conrad said,
https://helpx.adobe.com/photoshop/using/add-edit-text.html
You can convert between Point and Paragraph type:
https://helpx.adobe.com/photoshop/using/creating-type.html
Also, you said, "you'd just toggle that little button by the text". That little button is in Illustrator, not Photoshop.
https://helpx.adobe.com/illustrator/using/add-text-work-with-type-objects.html
Jane