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So Confused between S1 and S2

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After coming back from a LONG haitus (to a surprising major change everywhere) I have finally finished S1. I never did before despite having a level 70 sitting around...
So previously I was in the middle of S1 but was able to access many of the S2 quests like the mines, etc. So by the time I left for my haitus I was 3/4 through S1 and maybe halfway through episode 2 of S2.

I finish S1 and obviously, nobody remembers any of the events and we start S2 (even though I already kinda started it haha). So Seanna is in the inn and Tieve's avatar is greyed out, okay....I walk into the inn for a nap and go into this dream like cutscene and come out and the player goes "Tieve?!?" As if she DIDN'T become Morrighan yet. Then as soon as I exit the inn and complete that "dream cutscene" quest and head back inside, Tieve is still greyed out and once again no longer actually with us and replaced by Seanna.
I'm so confused. I know with Rise, a bunch of dialogue was changed or left out/added, etc. I just was so confused. So is Tieve still Morrigan? Why did she appear as if she enver turned into Morrigan at the beginning of S2..then suddenly disappear again? Is this the actual S2, the new one, a bug....or am I just mad confused? XD