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I used to be able to transform a picture into a shape without using the shape tool and not distorting the image. I can no longer remember how to do this and i've googled everything and can not find anything about it. I remember there was a shortcut key as well.
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Sounds like your thinking of the Cookie Cutter Tool
https://helpx.adobe.com/lt/photoshop-elements/using/cropping.html
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I literally just opened your picture so I could see it a bit better then spent about 10 seconds trying click on things. "Why aint dis workin?"
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I've always been a big fan of clipping masks. I typically use brush sets (ABR file) I've downloaded. I've got something like a little over 120 brush sets installed.