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When i try to create a preset it is greyed out. I have downloaded as DNG and it won't work
It doesn't matter if your image is a dng or jpg. You can save a preset based on your adjustments. What adjustments have you made to your image?
Are you trying to create your own Preset from the adjustments YOU make to any image?
OR, are you trying to 'Save' a Preset that someone else has embedded in a DNG file that you have acquired or purchased?