photoshop elements raw editor unable to save the raw conversion settings

Issue: "Photoshop elements raw editor unable to save the raw conversion settings. There was an error parsing the file." When: Hitting Save Image button

Have a look at the help file:

Process camera raw images in Photoshop Elements

(also accessible from the 'help' button).

What is generally not understood in the paragraph about saving changes is that the feature is not what you think, it's simply a conversion of the proprietary raw format into the DNG raw format which saves the adjustment settings together with the raw data in a single file (container).

You should ignore that stupid button because the usual way to save your edits is simply to click the 'Done' button. The settings of your sliders, crops etc are stored along your raw files in a 'sidecar' file with an .xmp extention. It's a simple, tiny text file. If you edit jpegs, tiffs or psd, the edits are written in the metadata header of the file without changing the values of the pixels. Only use the 'save' (to DNG format) when you understand it and need it for some reason.

If you hit the 'Open image', the converted files is opened in the normal Elements editor where with your settings already applied.

I would rather call the button 'convert to DNG'.

Back to your issue: if you can't use the 'save' button, be sure to read the help file and to pay attention to the destination folder you want the DNG files to be created. Be sure you have all writing permissions.

Moving to Photoshop Elements​