My wife is a nurse and has to produce videos. Her office has a Sony camera. We found out after purchasing Premiere Elements that we can't use Elements since you chose not to work with the most popular audio format.
I can't load Premiere on my Win 10 computer due to HIPAA. Her computer has Win 7. We paid $70 and we're stuck with an inferior product since you can't return software.
SO, I need you to fix this. There is no excuse that a company like Adobe can't work with Dolby.
And there's not a place to change the settings in the camera.
I don't see a question so maybe you aren't looking for an answer. But here goes anyway.
It's unfortunately a Windows 7 issue. Windows 7 doesn't supply the necessary component for Premiere Elements 2018 to work with AC3 audio. Windows 10 has no problem working with it.
This component used to be a part of Premiere Elements, and was up through version 15. If you can get a copy of version 15 or older (which should be cheap, since it isn't the current version) you can still edit on Windows 7.
Finally, how do you know you can't return the software? Have you tried?
Adobe will usually accept returns within 30 days. I suppose if you bought it from another vendor, however, you'll need to work with their return policy.
Windows 10 does not do anything to resolve the Dolby audio issue with Premiere Elements 2018.
It does seem to fix issues between Dolby and Premiere CC 2018.
"I need you to fix this". Won't work here because this is a user to user forum.
I agree that you've been wronged. This is not good. But, it may be that Dolby chose not to work with Adobe! Dolby is not the most popular audio format.
What does HIPPA have to do with Windows 10?
If you can't use a different format in the camera and can't update your computer to Windows 10, you are stuck.
One fix I can think of might be to convert your Sony footage to something more common with the (free) Handbrake program. Another is to buy an older version of Premiere Elements somewhere like eBay.
Good luck! I'm sorry you are stuck between two corporations.