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Version 3 uses json, whereas version 2 uses xml.
Whilst the dashboards aren’t compatible, you can convert them using the migration tool:
https://download.squaredup.com/tools-scripts/migration-tool-v3/
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As stated by Jelly, there is a migration tool
My results with this have not been very successful. Some convert fine but look bad in SquaredUp while others fail the converting process entirely
I resorted to recreating these manually