Could you please try the steps mentioned below: -
Quit Photoshop, then press Command + Option + Shift on cold-starting Photoshop. Get the keys down quickly enough and you'll be asked to confirm deletion of your current preferences.
Also, if you're having file format problems, ensure you haven't somehow tied in plug-ins provided by Adobe for a different (e.g., older) version of Photoshop.
Hi thanks for the reply Sahil. I tried what you said but unfortunately I'm still getting the same message when I try to save files.
May I know where are you trying to save the file to?
I've tried saving to the desktop (which currently results as iCloud), as well as to my Macintosh HD.
Hey I appreciate your help. I was wondering if you have any ideas regarding this problem?