Hey coming here from your YouTube comment. One issue is your versions might be mismatched. You're using Character Animator 2.0.1 and it seems like a newer version of Illustrator, but CH is up to v3.3.1 now. Updating might help.
I would also try renaming the file to not have a dot in it. It might be the case that CH thinks it's a ".strawberry" file instead of an ".ai" file.
I think its recommended to make the root layer independent (eg rename it "+character"). Also i would delete the template layer you have hidden if not needed any more. Usually names like "layer1" indicate the group was not named when imported, but yours is, so i am confused.
If you select "edit original" it should bring up photoshop on the file it is using. Then in photoshop delete the template layer (i think right click on the layer in photoshop and delete layer will be an option - sorry, not a photoshop expert).