Whenever I try to use the transform tool to resize an image, no matter what form of transformation I do, my picture turns pixelated. I've tried many different interpolation settings and nothing seems to be fixing the issue and I'm at my wits end. Is this a bug? I'm trying to design a grad announcment using photos I've taken. When I open an image I want to use on the announcement. the quality looks great. When I drag the layer over to my grad announcement file and drop it, the pictures is very big and I need to size it down to fit on my card. When I use the transform tool to shrink the image, it results in that image being pixelated. I'm providing images below. I've never had this issue before. Any help is appreciated.
Can you provide us more info and post screenshot of entire Ps window with Layers panel visible?
You are dragging photo from somewhere right? It is creating Smart Object after dragging right? What are Resolution and dimensions of document and image dragged? Please write them down and post here along with requested screenshot.
Are you taking screenshot before commiting transform?