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If you're on a MAC and it's a PNG image try this
Go to Preferences > Plug-ins and uncheck these options, then restart Photoshop
Allow Extensions to Connect to the Internet
Load Extensions Panel
The image is a jpg however I did try this and its still the same
Does turning off »Use Graphics Processor« in the Performance Preferences (Photoshop > Preferences > Performance > Graphic Processor Settings) and restarting Photoshop have any bearing on the issue?
Are Photoshop and OS fully updated?
What have you done for trouble-shooting so far?
Restoring Preferences after making sure all customized presets like Actions, Patterns, Brushes etc. have been saved might be a good starting point:
What did you copy into the clipboard?
Ive pasted an image from google into photoshop. Ive also opened a JPG icon that I have opened before with no issue in photoshop
Turning off Graphics Processor seems to have solved it!!
Will this course another problem if I turn this off perminantly though?
Unfortunately this is no proper solution as it invalidates GPU dependent features (like the Rotate View Tool and some Filter acceleration for example) but it indicates problems with the GPU driver or the OS.
Did you Download the image or use a Screen capture, If you downloaded what profile color space does the file have embedded and what color space are you editing your document in and how do you have your Photoshop Color settings set?
I have done both.
I downloaded and saved a black and white icon. I have used this before and problem.
I then downloaded and screen captured an image. Both are giving me the same result when i open in Photoshop. I used RGB when editing as i'm using the content for Web.