Will you please give us more details on this PSD file?
Is this a file with Layer Groups (Layer Sets)? Layer Groups will contain a little folder icon. If so, this may explain why you are getting this message. Elements cannot open Layer Groups for you to edit them. Only Photoshop can.
If is this indeed what is happening, I can post back with an action (.atn) file which will enable Elements to open Layer Groups so that you can edit/adjust these layers.
Elements 7, 10, 11, 12, 13, 14, 15, 2018, 2019 Photoshop CC & Lightroom Classic CC Windows 7 Pro & Windows 10 Pro
1. The image uploaded shows that there is only one Layer available and it is highlighted. 2. Opened Actions panel 3. Clicked on little arrow 4. AA-Ungroup layers is highlighted 5. Clicked Play button 6. Receive message (shown in imaged previously uploaded): "The command "Delete" is not currently available. Options are "Continue" or "Stop" 7. Clicked "Continue" and nothing happened.
Your screen shot shows the Actions panel with the built-in actions in Elements. The action being discussed in this thread is a third-party one; such an action needs to be loaded into the Actions panel.
Go to this post, download the .zip file, and extract the two .atn files. They are: AA-Group Layers.atn and AA-Ungroup Layers.atn.