Adobe recently changed the way Free Transform works. But you can restore the old mode of Free Transform. See exactly how the process is done.
How to use Free Transform
Free Transform is the tool that allows you to change it size and reshape any layer, shape, path, text, mask, object, or anything else.
With the layer unlocked, you can access it by going to Edit> Free Transform or by pressing the Control + T (Control + T on Mac) keyboard shortcut. This brings eight "handles" that surround the layer or object.
How Free Transform worked: To resize or resize the object, you would click and drag one of the handles. You can then freely drag the handle anywhere you want and deform the object as you wish.
There were two major keyboard shortcuts: Alt (or Option on Mac) and Shift.
Pressing "Alt" (or "Option") changed the size or shape of the object around the reference point. (You could also click and move the reference point to change the center of the transformation). "Shift" locks the proportions of the transformation. Instead of reshaping it, it limited you to just resizing it.
Also, by default, the reference point is now hidden. This means that "Alt" (or "Option") changes the size only in the center and not at the point where you placed the reference point.
How to restore the classic behavior of Free Transform
To do this in Windows, click Edit> Preferences> General. On a Mac, click Photoshop> Preferences> General.
In the Options area, select the "Use Legacy Free Transform" option. Now, by pressing "Shift" you will lock the transformation instead of it unlock. You can close the Preferences window.
Also, to display the reference point when you have Free Transform enabled, click the small control box in the upper left corner of the ribbon. You can then drag it as before or select one of the other points as centre of transformation.