Solution
This error is related to the encoding format of the S2P file. In the file it was used UTF-16 as the encoding format (likely caused from importing/exporting out of Excel). The
Touchstone file format specs , specifies the encoding format should be ISO/IEC 8859-1. However, UTF-8 and ISO/IEC 8859-1 encode ASCII the same way, so either can be used. Changing the encoding option to either UTF-8 or ISO/IEC 8859-1 allowed the S2P file to be read properly by RFIC SFP, RFSG and RFmx. The encoding format can easily be changed through Notepad++.