Unity won't save an image as a sprite. Video provided to give more context

No matter what I do, it won’t save the image as Sprite (2D and UI) and thus won’t allow me to use the image as a sprite ingame

I changed Unity to start running in administrator mode thinking something had happened with permissions, but that did not solve the problem

Can anyone provide assistance? Every time I google the issue I get “solved! all I had to do was set it as a sprite and hit apply!” but clearly that isn’t working for me

Thank you!

I HAVE SOLVED THE PROBLEM

It was an imported asset called GridEditor2D. For whatever reason it was preventing me from updating my sprite assets.

Thank you everyone for the help!