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Hey Ron, the characteristics that you describe for the crop tool is how it's supposed to work. The rectangle tool is used for creating shapes and is not usually used for creating selections. If your looking to create a selection and place it on a new layer, the Rectangular Marquis Tool would be the best choice. This will preserve the integrity of the original image.

Select your Rectangular Marquis Tool.

Make a selection around the area you desire.

Hit the Cmd/Cntrl + J to copy the selected area to a new layer.

You can also use the Rectangular Marquis Tool to make a selection.

Then add a layer mask that will mask the area not selected, while maintaining the integrity of the original.