Can not drag assest into the scene after importing a .psd file in 2D

Hi,
I am having trouble importing a .psd assest into unity. The file imports into the assests folder but after that when I try and import that assest or any other assest when dragging it to the scene the mouse will flicker from the do no symbol and the mouse not allowing me to put it into the scene after that even when putting assest that were working before I imported the .psd files. It is now not letting me import them too. I have tryed to restart my computer. Importing images into the scene importing other .psd into the scene.


Video of what is happening: