Animation Window Remaining Greyed Out 2017.2.3p4

Hello,
I have a weird problem with the animation window. I have an empty game object that is parent to two objects. I created an animation clip that moves the two objects and verified that the animation runs correctly in the animation window preview. I gave the empty parent an Animation property and put the new animation clip into the Animation property. However I am no longer able to edit the animation when I click the empty parent object with the animation window. I can see the two position properties, but I cannot play the animation or record anything. The preview feature for the animation that lets you drag a gameobject into it to test the animation also shows no animation occurring.

The console says that since the clip is legacy, it cannot be used in the State "*Name of the animation*". Legacy AnimationClips are not allowed in Animator Controllers.