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Illustrator currently does not support 16-bit png images. We have taken note of this request.
An error occurred while saving the commentCatharine Macintosh commented
omg SO frustrating. Yes Pls fix!!!! Thank you to other commenters for suggesting workarounds
1) Open in preview
3) save as - change channel to 8 bit from 16 and save
4) Good to go. (Just time drain:(