Why is After Effects importing my PSD's as a folder of layers and a flat composition?

I've imported Photoshop files to after effects tons of times. But suddenly, I'm having problems importing them. I make sure that I click keep layers and all that, but it imports a strange, short, flat layer in after effects and then a folder of all my layers as opposed to a precomp with the layers. I've tired saving the files again and making sure all of the settings are correct and its not helping at all. I've even tried precomping the folders content and the weird layer and it does nothing. 
Can someone please help me? All I want is for this photoshop file to be imported as a precomp, but it keeps opening as layers in one folder which isn't linked to the photoshop file.

There's got to be something different with the PSD. Is it RGB? That's the first thing to check. What is the structure of the PSD. Layer Groups? Effects? There are so many things that could go wrong that without more information we would just be guessing.

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