How do I drag to resize an image in Photoshop?

I recently downloaded Photoshop onto a second computer. I'm not sure if that upgraded Photoshop or left me without some options or something. Now I'm unable to click on a photo and drag the corner to resize the image. Why is that? I use that function a lot and would really like to get it back. Thanks!

Whenever I try to resize an image by clicking "image size" it only resizes the canvas. Before, I could click on a single photo and drag the corner to resize the image. If I pressed shift while I did it, it would retain the same dimension ratios. If I pressed control while I dragged the corner, it would let you manipulate the shape so that you could kind of make it 3D. If you put your cursor in the right place, it would also let you rotate the image. It won't even do any of that when I type text onto my canvas. It seems like that function is turned off, and I'd like to know how to use it again.
Maybe I'm saying it wrong. I guess what I really mean is resizing a layer. Like, if I copy and pasted a photo onto a canvas I already have open, I'd want to drag to resize it to fit the canvas.

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