According to Adobe’s supported camera list, the GX7 requires ACR 8.2. Do Help / About Plug-in / Camera Raw and see what version is reported. Then do Help / Updates and see if an update is available.
Thanks!! I downloaded and apparently 8.2 installed OK. But it still shows 8.7.1 in Preferences panel. How do i get 8.2 connected to PS?
You need to have at least 8.2 for that camera. So if you have 8.7.1 installed it should be able to read the files from your camera. There must be something else that isn't quite right.