Selecting Bitmap body parts

I’m going through tutorials trying to get started and I’m using a bitmap puppet from Photoshop. Harmony Essentials 14, I’m in the trial period.

The tutorials show that you can select each body part and add bones. When I try to select a body part, the whole thing gets selected; the bounding box is around the whole puppet and it all gets that ghosted color instead of just the arm like in the tutorials.

I already placed the layers inside of other layers (hand inside arm, eyes and mouth inside head and brought them forward). When I select the arm for example and drag there is A COPY of the whole damn puppet that is attached to that body part. That doesn’t seem right. Right?

Even when I imported as vector, the bounding box was around the whole thing. and what’s up with that copy/ghosting thing??