To fix this problem in Ubuntu / Debian, use the following steps:
Step 1) Open Synaptic Package Manager
Step 2) Search on "libavformat"
Step 3) We need to install the alternate version of libavformat... the one with h.264 and mp3 codecs. These package names vary from distribution to distribution, but it should be something similar to:
Step 4) Close and re-launch OpenShot. You should now be able to use libmp3lame, h.264, and many other restricted formats.
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