Bug with PSD Clips getting some render issues for Effects

Original posts here: https://community.adobe.com/t5/premiere-pro-discussions/gpu-render-error-and-mercury-playback-engine-greyed-out-too/m-p/14096772#M476011

"Brand new MacBook Pro M2, trying to add default effects to clips, and getting render errors. First I've ever seen.

See screenshots for simple brush strokes fx applied to a .psd clip and getting that render error. It works on the video clip. Can I just not do this to PSD clips? Thanks"