"There was a problem reading the layer data. Read the composite data instead?"
If you are facing above error message it signifies that PSD file got corrupt. Let us take an example which has mostly faced by us. When you are trying to open a PSD file and an Error message pop up which says "There was a problem reading the layer data. Read the composite data instead?" when you click on “read composite data” you get another message which says "Could not complete your request because the file is not compatible with this version of Photoshop". Above written errors indicates that your PSD file is get corrupt and you need to apply a PSD repair method or software to open this file. PSD files which are created by using Adobe Photoshop may also get damaged or corrupt due to several reasons. Improper system shutdown and virus attack causes PSD file corrupt.
Cause of the problem:
Above problem occurs when you try to access NTFS-formatted drive with Mac computer with third-party software to access the drive. Apart from this reason there are several other cases in which this problem may occur.
Solution: As per Adobe support there is one solution to overcome from above problem that is format NTFS drive by using disk utility's erase command but don't forget to take back of all your data.
But apart from above written solution you can also resolve this problem with PSD repair software. There are n numbers of PSD file recovery software available to repair corrupt or damaged Photoshop files. You can try PSD recovery software which is compatible with your systems configuration to repair your corrupt Photoshop file.