Unable to get the cycle 2 plugin
Readme says 

1) Assure that you are using Views 3.x. http://drupal.org/project/views

2) Upload/install the Libraries API module. http://drupal.org/project/libraries

3) Upload/install the ctools library. http://drupal.org/project/ctools

4) Create a sites/all/libraries directory on your server.

5) Create a directory within sites/all/libraries named jquery.cycle.

6) Locate/download the jQuery cycle plugin. http://malsup.com/jquery/cycle

7) Upload/install the jQuery cycle plugin: place it inside the jquery.cycle
   directory.
8) Enable the Views slideshow and Views Slideshow: Cycle modules

9) You should now see the new views style option called "Slideshow"

You need to install cycle plugin not cycle 2. Try installing using cycle plugin and follow above instructions.

There is a sandbox module available if you want to use Cycle 2 plugin.

You can download using git commands.

git clone --branch master http://git.drupal.org/sandbox/BenYoung/1832338.git views_slideshow__cycle2

cd views_slideshow__cycle2

Follow the installations instruction in project page for the same.