Thanks, both.
I should have mentioned I’m on a Mac, so I think some of those options are out for me. Handbrake isn’t recognizing the m2ts file for conversion either (and I think it should) so I’m wondering if something is wrong with the file. I’m unopposed to trying it a 4th time and/or leaving it alone with the .mkv I have for now, until there is a v2.0. I don’t actually know that there is anything problematic about the .mkv as far as quality, only that I’m having a far different process than what I experienced with SW and ESB.