Use a program like Adobe Media Encoder or Handbrake to convert your footage into an intermediate codec.
To understand why the tool fails, we must first understand what it does. Warp Stabilizer is not your average effect. It is a complex, two-phase process that relies heavily on your computer’s CPU and RAM.
The error in After Effects is rarely a sign of corrupt footage—it is almost always a sign that the effect is overwhelmed by clip length, multi-threading settings, or cache data.
Right-click your clip and select (choose "Move all attributes into the new composition").
(choose "Move all attributes into the new composition") before applying the effect. This often resets the initialization process. Toggle "Detailed Analysis" : In the Effect Controls panel, check the Detailed Analysis
The Warp Stabilizer requires precise pixel dimensions to begin its analysis. If your composition or sequence settings are set to a (for example, a weird vertical video size or a non-standard resolution), the effect often fails to initialize because it doesn't know the boundaries of the image it is analyzing.