I can't post links, so search for a post from 2018 for some detailed steps titled "How do you transfer characters on Windows 7".
Some notes:
I was able to transfer from the F: drive though, didn't need to copy things to C:\.
I also set chartran.exe to Run as Adminstrator, but that may not be required.
And I modified the dosbox_darksun2_single.conf file by adding a chartran option instead of replacing the ravager option so I could quickly test different things since I couldn't get the import working at first either. Here is the modified file:
[ipx]
# ipx: Enable ipx over UDP/IP emulation.
ipx=false
[autoexec]
# Lines in this section will be run at startup.
# You can put your MOUNT lines here.
@echo off
cls
mount c ".."
mount C "..\cloud_saves" -t overlay
imgmount d "..\game.ins" -t iso
c:
goto launcher
:launcher
cls
ECHO [1;33m[42mÉÍÍÍÍÍÍÍÍÍÍÍ&I acute;ÍÍÍÍÍÍÍÍÍÍÍÍÍ ÍÍÍÍÍÍÍÍÍÍÍÍÍ&Iacut e;ÍÍÍÍÍ»
ECHO º ------------------------------------------ º
ECHO º Dark Sun 2: Wake of the Ravager Launcher º
ECHO º ------------------------------------------ º
ECHO º 1) Dark Sun 2: Wake of the Ravager º
ECHO º 2) Game DOS Settings º
ECHO º 3) Import Dark Sun 1 Characters º
ECHO º ------------------------------------------ º
ECHO º 4) exit program º
ECHO º ------------------------------------------ º
ECHO ÈÍÍÍÍÍÍÍÍÍÍÍÍ&Iacut e;ÍÍÍÍÍÍÍÍÍÍÍÍÍ&Iac ute;ÍÍÍÍÍÍÍÍÍÍÍÍÍ&I acute;ÍÍͼ[0m
choice /c1234 /s Which program do you want to run? [1-4]: /n
if errorlevel 4 goto exit
if errorlevel 3 goto import
if errorlevel 2 goto setup
if errorlevel 1 goto game
:game
cls
ravager
goto exit
:setup
cls
sound
goto launcher
:import
cls
chartran
goto exit
:exit
exit