Originally Posted by Epic Kiwi
I had the same issue with Episode 2, it turned out it was because I had been playing the game with the Episode 1 launcher, causing it to not authenticate my copy of Episode 2 and run it as if I was using an illegal copy. Once I used the Episode 2 launcher and it logged me in, the game saved just fine.
This is the case, however, the installer creates the shortcut with the same name as Ep1! So this could be why people are getting confused, me included.