Cannot Drag / Drop png into Sprite Renderer

Hello All, if anyone has any input as to why something so simple is failing. I am following a training video. He provides 3 PNG files to replace Cube and Sphere GameObjects. He said to remove every Component for both Objects, leaving only Transform and the Controller Script assigned in the Inspector.

I have them imported from Assets> Import New Assets and sitting in my Assets panel. I select Cube in the Hierarchy> click add Component> scroll down to Renderer> select Sprite Renderer. I should be able to now just drag anyone of the 3 provided PNG`s onto the first drop box that says None(Sprite). None of the files load. I Imported a JPG and a PNG of my own add they also failed to load.

If I single click on any of them in the Assets Panel. They appear in the lower preview panel in the Inspector Import settings. Showing 64X64 size and RGB Compressed value. This should be the easiest step in the entire lesson but all I get is the little blue crossed out circle when I go to move them. But I can drag a script to any object ??? It is not life threatening but WHY it wont do something so easy is really bothering. Any info will be much appreciated …Thank you for your time…Peace

I figured it out or what He in the video did not include… He failed to mention I needed to change Texture Type from Default setting to Sprite (2D and UI) in the Inspector and click Apply.

What the “KEY” difference is between the two, I still don`t know and you could have filled that part in. I did figure out how to get them to be accepted and now I can move on to sorting layers. Good day…

I can only answer it is a single image he provides, not a sheet. I had to go to Asset> Import New and bring in each 1 at time, the came in as each one there own separate image. I can also add He in the video called them spites. I am following along learning as I go. So I am a novice and not completely correct with all the terminology or differences between the two.

But doing exactly what I seen him do, I can not replicate it in my version of Unity. He is using the same PNG file image and moving on to create sorting layers. While I can`t even get it to drop on the same location block in the Inspector that He is. Very frustrating… any input??