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Hello! We wrote a post on Twitter and Steam recently explaining this but haven't gotten a chance to post on Itchio as well. 
This is normal. We tried to avoid this as much as possible, but sadly because of the type of changes we made to Chapter 1 for version 1.1, old saves are now obsolete. Sorry for the inconvenience.

That's quite alright. I already beat it so I wouldn't mind mind resetting. Hopefully this won't effect future games. Keep up the good work really love this series!