"Replace with after effects composition" replaces clip with calibration image

This is what I observe after choosing "Replace with after effects composition" for a clip in my Premiere project:

Same calibration image I see in Premiere project after I return back to it. I.e. clip just replaced with this and I can't do anything about it.

Does anyone know what the issue might be? I used this technique for all other clips in my project and it always worked until now.