Check that you are definitely running the latest version (Help>System Info), which is 2.4.1 (8.4.1 if running Lightroom Classic). Raw support for the RX100VII was added in that release.
Did you check your Lightroom version, as Jim said? Lightroom does not use Camera Raw (it has its own, built-in version), so the fact that you can open these files in Camera Raw means nothing in respect to Lightroom.
Yes, I know you said that and I apologise for insisting, but if I got one dollar for every time somebody said that, only to find that it wasn't true after all, I would be a wealthy man. People often say that, not because they verified the version number (in Help - System Info), but because the CC app says they are up to date. Unfortunately that isn't the best way to check it. Sometimes the CC app doesn't see an update for some unknown reason.
I am using an iMac. I was using the second most recent OS, but I decided to update to Catalina today to see if that made a difference. It still didn't help. I have been using Lightroom CC 2.4.1. I found a workaround that seems to work, but is somewhat tedious. If I open the SD card in Finder, I can select all of the ARW files, select Open With, choose Adobe Photoshop. This will then open Camera Raw 11.4.1. I can select all of the images, click on Save Images, saving them as DNG files, which I can then import into Lightroom.
It’s probably easier to use Adobe DNG Converter in that case. This is very strange indeed, because everything you say suggests you are somehow not using the latest version of Lightroom, despite it saying it is 2.4.1. Have you tried uninstalling and reinstalling it?
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