The Edit Transform Scale command is not working for a pasted image

I am pasting a copied image from one file onto another.  The second file I am copying onto, is a single layer template.  I am then trying to use the Edit Transform Scale command -- which I used many times before -- to then change the size of the copied image to fit it to the template but all of a sudden the PS software will no longer let me change the scale of the copied image.

I have tried a bunch of things to address this challenge including reopening the template file and saving it afresh before copying the image onto it and using the Edit Free Transform command instead.  I read the relevant help entry and looked through the community postings herein and did not find any insights therein.  It feels like I have inadvertently toggled a setting so I have looked through what I can see and have not found the answer there either. 

I would deeply appreciate assistance on this challenge as I am trying to get a book to the publisher before a deadline and this image is the cover art.

Sincerely,

     Phil