I have a folder of images, I dragged and dropped images from the folder into the content browser and was able to import 3 without issue.
I see that the bug reporter created a Jira ticket but set the status to ‘Needs More info’ - Are you seeing this happening in just one of your projects, or all of your projects?
i did have the same issue in ue5.4, but i found a trick to import textures, that is copy texture files inside the content folder of the project, and them, into unreal engine, the program recognize that files and ask for import them …press yes, and in that case all texture are imported in right way, maybe on uefn works too