Hi all and ESRI Team!
I thought I was going crazy.. but I confirmed that 1.1 has no issues.
If I download a created App in 1.2 Developer Edition. Unzip it... do nothing to it... rezip. The Import either fails or spins endlessly.
I had made some changes to an already .zip file and tried to import which also failed, thinking it was something mis-configured, but I did nothing to a sample download zip as mentioned, still failed.
I then spun up version 1.1 and did the same simple test. download an app... Unzip, do nothing... rezip... Import ... worked.
Has anyone else had these issues or can confirm?