Playing together in their first tournament, Erlich, 41, and Matkowski impressed during week one when they eliminated the second seeds.
And the signs looked good as they stormed into a 2-0 lead, romping to victory in the opening set 6-1 before winning the second 7-5 on a tie-break.
Erlich of Israel believes it was "an opportunity missed" as they allowed their opponents to get back into the game on Court 17.
Sharan of Egypt and Sitak of New Zealand bounced back superbly to win three sets on the spin - 6-4, 6-4, 6-4.