I've added a rectangle (step 1), placed an embedded image (step 2) and created a clipping mask (step 3). How can I resize the embedded image (in the example below, the image with the flag)? I use Photoshop 23.5.1.
Step 1:
Step 2:
Step 3:
Select the Move Tool V.
Select the image layer in the layers panel.
Click and drag a handle to rescale it.
If necessary, click and drag somewhere in the middle of the image to reposition it.
Answer from Mylenium on community.adobe.com:
It's just a layer that can be manipulated e.g. with the Free Transform tool like any other layer.
Screenshots: