How does the 2D psd importer plugin work?

Hi!
I am completely new to this forum. I am a 2D gamedev and I just realized that I might be able to speed up my 2D workflow by using the 2D psd importer plugin in Unity instead of always exporting assets into texture atlases.

But I have a slight problem on my hands, I use Krita, not Photoshop. Although Krita supports exporting a work file into a psd one, I can’t seem to get a photoshop psb from it. My layers in Krita seem to merge after importing the psd work file into assets in Unity.

I want the importer plugin in Unity to automatically create a prefab that contains all of the layers as children, not merge them. I am following a tutorial fit for Photoshop, but because Krita can do a similar psd action it should not behave differently in Unity. I use Unity 2021.3.4f1

Does anyone know why this doesn’t work?

For more context, this is the YouTube video tutorial about this plugin that I am trying to follow:
From Photoshop to Unity with PSD Importer (youtube.com)