Illustrator cant preview and keeps going to outlines

hello!
preface: skip to 2:20 in the attatched video and then to 5:45 to skip over unnecessary footage

Illustrator is being a pain and I am unsure what is going wrong. 
It keeps randomly not being able to preview and goes to outlines. From there the file is basically irreversable so I keep having to recreate the file and copy and paste the text that way I don't have to keep writing it out over and over and fixing type settings.

The screen recording i attatched shows me trying to place an image file in both .psd and .jpg both of which the file sizes do not exceed 82.0 MB, so I dont think its a problem with the file being too large and my computer not being able to handle it.