[Wynne Bernadette]

Hello, I know it has been 8 years. But in case people are looking for the answer, I got the solution, 8 years after.

You have to click the main layer (JUST the main layer) and Release to Sequence. Selecting them all would mean you’re trying to release each path to separate layers, which was the thing that doesn’t compute in Illustrator.

Hope that helps.
Wynne