Cannot create a new video layer in photoshop/red exclamation mark on video layer

Hi guys!

I have photoshop 22.3.0 (2021 Mac version) running on Mac mini.

I cannot find the "create video layer" option in my photoshop timeline. When I go to layers there is no option for video animation. My workspace is in "motion" workspace. 

My goal is to import an animation, so I also tried importing my animation frame by frame. But when it's done, it has a red exclamation mark on my video layer. I recognize that it may have issues with finding the footage, so I kept all files within a single folder on a single computer - but it still doesn't work. Someone having either issue that I am experiencing right now?