Unable to Sync PC to Xbox One

I just downloaded Killer Instinct for PC. Previously bought the Combo Booster physical copy for Xbox One. I was told that the Season 1 and 2 characters should sync on PC and Xbox One but I only have season two characters available. I tried the following:

Restart Computer
Xbox One App > Settings > Network > Enable Teredo
Double checked Xbox One that characters were indeed available still from season 1
Any idea? Thanks