Why can't I place the .png file onto the Unity scene?

So I was working on a 2-week long game jam submission when BOOM! a glitch appeared. For some reason, I can’t put the .png file into my Unity scene because it’s giving me that “No” cursor symbol:

EDIT: Click this instead of the Image icon: What the heck is going on - Google Drawings

You need to set the texture type to Sprite.

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can also set Project Mode, in 2D it sets texture import settings to Sprite by default:

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