I couldn't import the save as well. So I turned off the compatibility mode on Season 1 and replayed episode one (some patch must have repaired the issue because of which I turned it on in the first place). The game created another TellTale folder with all the saves I had (steam cloud sync on). Just copy those saves from the compatibility folder to the new one (it's the one with fewer saves) and Season 2 will be able to detect them. Worked like a charm :)