please specify the exact steps to reproduce this bug. I will try it in my system. also provide screenshots when you can.
It gets weirder. Some things work and others don't. I tried three layers in Photoshop (besides the background). One had Color Overlay applied, one had Drop Shadow applied, and the other had nothing.
When I import the file into AE, I am finding all kinds of interesting things.
On the Color Overlay layer, Inner Glow, Outer Glow, Satin, and Bevel and Emboss can be applied, but Drop Shadow, Stroke, and Gradient Overlay can't,
The Drop Shadow layer wouldn't take Color Overlay, Gradient Overlay, Stroke, or Inner Shadow, but it will take Inner Glow, Outer Glow, Satin, and Bevel and Emboss.
It seems I can apply any/all layer styles to the nothing layer.
Also of note, choosing to "Convert to Editable Layer Styles" on any of layers with PS layer styles results in all of the AE-applied layer styles disappearing again.
This looks like a bug that should be reported. www.adobe.com/go/wish
I plan to file a bug report and suggest you do too, derekr78 (and anybody else who finds this a problem).