I extracted the folder. Deleted my old beta 1 folder. Started game in 2.0. Continue button was not grayed out??? Clicking it results in stack trace (well...no duh) where it says can't roll back due to infinite loop. Windows 7
Was the game running when you deleted this folder? Did you restart the game after doing this to see if the option was still available? - Restarting after changes is always good though.
Oh actually I know why this will be happening. If you are deleting saves you will need to ensure that they are also removed from appdata '\AppData\Roaming\RenPy\ShiningSongStarnova-1477659925' as Ren'Py actually has two locations it is creating them.
Keep in mind that 'continue' currently works off a value called 'lastsave' which will read the save in the newest slot so just deleting one will still mean there is an element it can continue off. An infinite loop with the save suggests that the part of the script that you are trying to load has changed between beta one and beta two therefore may no longer be usable.