Cant select and edit text

[Insizwa]

I am using P. Elements ver 2020 on Windows 10. I created a text layer and when I select the text layer to edit, Elements won't allow me to edit or highlight text. Instead, it creates another layer.

I have reset the preferences and the issue still exists.

I have to delete the layer and recreate it to effect any changes.

[Jeff Arola]

Text layers have a big T in the layers panel.

Maybe somehow your text layer got Rasterized (Simplified and turned from vector text to a pixel layer), like for example, if you went to use a filter on said text layer, photoshop elements will rasterize (simplify) the text layer before running the filter.

[Bojan Živković]

Highlighted layer in your screenshot is raster layer as already pointed by Jeff and that is reason why you can not edit text on it.