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Looks like GPU is off. Go to Prefernces > Performance... and make sure "Use Graphics Processor" is enabled.
Or, make sure we're in a default state and there are no stale settings somewhere:
Restore your preferences using this manual method:
https://helpx.adobe.com/photoshop/using/preferences.html#Manually
Does it work correctly?
If that doesn't solve it, you can quit Photoshop and put the Settings folder back.
If it does solve the problem, I would like to get the folder of settings to try and figure out what is bad with them.
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If you go to Photoshop>Preferences>Guides, Grid & Slices you can change the color of the Transform Controls (Bounding Box) under Controls>Control Color.
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Thanks, Jeff. It worked.
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