During usage the cursor is defaulting to the Hand tool and I'm not able to switch tools. I've tried restarting and the same issue is there. I've optimized the performance settings and restarted PS, no change. After 10-15 mins the tools are responsive.
I haven't considered that the space bar might be an issue. I am using the Apple wireless keyboard, not sure if the battery is low or it's keyboard is defective. My colleague is has be having this issue a well, though he's also using a wireless keyboard.
I'll try to see if I can recreate this issue on a wired keyboard.