Picking up one corner and dragging doesn't work..nor does holding down shift+Alt (to preserve proportions) and dragging. Seems like some sort of bug? Maybe just a setting somewhere?
I've had that problem as well. The bounding box is there, but you can't grab at corner points, nor can you rotate. It still rotates if you use the rotate tool, but nothing with the black arrow tool.
The only way I've figured out how to fix this is to restart the program.
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