Then let us take a look at the next step that could fail. Can you in Premiere Pro - go to preferences - Media Cache Files - open the folder which is shown in there (if there is no folder selected / choose a new home for the media cache) - check this folder is writeable by you by creating a sample file in it. (the media cache is especially important for working with audio only files - e.g. mp3)
Current issue with transcription in combination with AI audio enhance.
Do a new location for both caches.
I knew I was in trouble replacing the linked video with a new one when re-using an old project. It just kept thinking it had it transcribed and I could not delete or do a new transcript. I wish the AI enhance had a way to lock it down so it didn't have to start from zero every time I move the mouse.
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