Text layers or rasterized text. Transform can also Distort and Warp in addition. Rotation and scaling layers is not all transform can do. Exactly what and how are you rotating text. Only vector smart object are transformed via vector graphics Smart Object are normally resized via interpolation. Text layer converted to Smart Objects are not vector smart objects. Vector smart objects are placed Vector files like .SVG and .AI
Rotating Text layers should rotate via vector graphics.