GeoTiff files can be optimized for the web, and we see this variant becoming popular in the GIS world. Unfortunately Civil 3D does not recognize this TIFF format and refuses to create a Surface from the file.
As a workaround people need to open and save the file in, say, QGIS. It would be great if users can skip this step (assuming they understand why Civil 3D does not accept a valid Tiff file).