Can import a simple picture into a project.

I get this (attached) but I am not importing video but a picture. 

And I treid multiple ways to import a picture (JPG) as I use it for years (drag & drop from foleder direct, from files manager and File>Import). No the funny thing is I went into a Photoshop and saved the picture as PNG and PSD. PNG worked but PSD gave me a differen error which is attached.