Crop a Photo into a Circle in Photoshop (with Transparent Background)
Photoshop can’t export a literal circular file, but you can mask an image inside a circle and export the transparent pixels. You’ll use the Frame Tool to create a circular mask, position your photo, and export a PNG with transparency.

Step-by-step instructions
Create a circular frame
Select the Frame Tool (K).
In the Options bar, choose the circular frame option.
Drag on the canvas to draw the circular frame over your image.
If a new layer is created instead of framing your image, unlock the photo layer by clicking its lock icon, then draw the frame again.
Position and size the image inside the circle
Double-click inside the canvas until the focus highlights the image (not the frame).
Drag to reposition the photo within the circle to your liking.
If the frame is selected instead, click the photo layer in the Layers panel and try again.
Use the frame’s corner handles to resize the circular mask as needed.
Export with transparency
Right-click the frame layer and choose Quick Export as PNG, or go to File → Export → Export As…
In Export As, set Format: PNG and enable Transparency.
Click Export to save the circular-looking image.