Why are all png textures now importing as sprites?

I had to reinstall Windows, and now my different versions of the same Unity project has this issue. All png files seem to be set up as sprites, and when I try to change it back to default in the inspector, it immediately changes back.

What gives?

Still nothing! Maybe it is a permissions issue but I have no idea how to find out how to fix it. I moved a fresh project over from my old drive and it now has the same problem.