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I was able to perform this function all day without any issue when randomly (5 minutes after saving my last GIF from Save for Web) it just started giving me this error:
I tried restarting Photoshop and my OS. I tried saving as a GIF from other files and it still didn't work. Saving other file formats works fine.
Try resetting the preferences.
Thanks, Melissa. That didn't work for me either.
Try using generate. You need to turn it on and name your layer - layer.gif and it will automatically save in the same location as your file.