In the Validate File window that opens, click the top box to "validate file" and then click OK.
When the validation completes, a data log will open in Notepad, please let us know if any errors or issues are found/repaired, and when ready close and re-open Quicken.
Are you then able to select the payee that you would use after completing this process?
Please let me know how it goes!
-Quicken Tyka