After Effects when import importing PSD files

!!! I had ongoing AE project on Friday so I decided not to upgrade AE to v26, cause I didin't want any surprises. 
But unfortunately, I upgraded Premiere to V26, and since Premiere was upgrading, it also upgraded Media Encoder automatically. Today I opened After Effects v25.6.4 and tried to import PSD file AS LAYERS (Composition / Composition-Retain Layer Sizes), as I always do, but to my surprise After Effects became unresponsive. I tried a few more times without luck. 

I then thought that maybe it has something to do with the newest Media Encoder, since it was upgraded to the newest version, but After Effects was still on v25. So I updated After Effects to v26. But when I tried to import a Photoshop file as layers, it froze. If I choose to import PSD file as footage (not layers), it imports fine. 

I tried to import PSD files that I have imported in the past without problems from my previous projects, and After Effects also froze, every time. 

The only work-around I see is to export every Photoshop layer of PSD file as a separate PSD file and import them all into After Effects. What a mess! How soon can you fix this issue?