Am I correct that what you want to do is to pick a corner grip on a Polyline rectangle, and have the size and proportions of the rectangle adjust as you drag that corner grip around, but with the Polyline remaining rectangular the whole time, with the varying edges remaining orthogonal? In other words, sliding the positions of edges that remain orthogonal, but by dragging one shared end of two edges together, rather than the midpoint of each separately?
I agree that basic AutoCAD has never worked that way. [Within a RECTANG command it works that way, but not in grip-editing.] I suspect you must have had a custom routine* going, or a dynamic Block, or it's a special feature of an overlay program, or something.
Ordinary SCALE won't achieve what you show in your non-video image, because it would need to scale by different ratios in the X & Y directions. But a Block could be worked that way somehow, changing the X & Y scale factors separately.
* Certainly a custom AutoLisp routine could be made to do what I think you want. It would probably work by automating a process such as this [not the only way]:
User selects the rectangle.
Routine checks that it is, in fact, a rectangle, and orthogonally oriented. If so:
User selects the corner to drag.
Routine finds the opposite corner.
Routine starts a RECTANG command at that corner, and lets User drag the opposite corner to draw the object.
Routine copies all Properties from the original to the new rectangle [Layer, color, linetype, etc.].
Routine deletes original rectangle.
Would something like that work for you?
[It could also be done using (grread)/(grdraw)/(grvecs), but doing it in an actual RECTANG command lets Object Snap operate if appropriate, and would allow for the type-in-Dimensions and other options.]
Other questions arise, such as:
Would your source rectangles ever be at non-orthogonal angles? [That could probably be accommodated, but would be more complicated.]
Would varying Polyline widths ever be involved? [Global width wouldn't be too hard, but varying would be a challenge.]
Kent Cooper, AIA