Hi, I'm experiencing this same problem. I don't have a solution unfortunately, but I seem to have noticed there have been multiple iterations of Photoshop v25.4 and the most recent update of 25.4 appears to be what cause the bug to occur. I had been using 25.4 from its original release without problems and now I'm experiencing the same issue by extension, however we can't regress in increments. When reverting back to a previous version, which one did you choose? I recall having issues with 25.3's transform tools
Edit: I use both windows 10 and 11 and can confirm it does not work on both operating systems. If you're a Mac user, that makes 3