Data merge cannot open txt - why?

When attempting to merge a txt or csv file with my InDesign document, I get an error message that the file is not correctly set up. I have done this many times before without any problems - the problems has occured after moving to CC. It is a simple Excel file saved as txt or csv. I can - however - still import old txt or csv files. I would be very grateful for some help?

Might be the encoding, though my recollection is that Excel doesn't provide any options and the default should work. Does it have the correct extension?

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