I had this issue when I first tried creating the child theme for this. The issue (for me) was with the name in the template field. At first I copied the name from the original CSS: Theme Name: Pilot_Fish
But, I ran into the issue you are describing. I was able to get it to work by changing the name to: Template: pilot-fish
I hope this helps. This is a fantastic theme, I really love it, and have had no trouble after that initial hiccup.