When trying to resize a text box in Photoshop, it is stretching my type instead of just making the box larger. It is a text box and not a bounding box.
It just started doing this out of the blue. How can I fix this?
Your text within the layer is being rendered as ‘point text’. You need to make the text ‘paragraph text’.
Select and activate the layer that contains your text from the layers palette.
With the layer active, goto Type > Convert to Paragraph text. You should now be able to click into the text and see a bounding box that can be resized without resizing or rescaling the text inside.