Sorry to hear you have had problems. It is not really anything to do with the new UI handles, it is the conflation of Xara forcing the Photo Tool actions on us for selected images despite the Selector Tool being active.
You have to click a second time on the image.
This toggles the Show rotation centre On.
The conflation is the need to know if Smart Transform is active (On) and if you need to hold down the Alt key all with the removal of the Show selection bound handles button.
Simple when you know how.
Acorn
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