It would seem this is a bug in the simulator.
It should work fine on the processor, but for some reason the simulator does not like this.
Even if you properly move the stack in the prm file, you still get this error:
In the segments section:
RAM = READ_WRITE 0x0100 TO 0x15ff ;
RAM1 = READ_WRITE 0x1880 TO 0x207F;
MY_STK = NO_INIT 0x1600 TO 0x17ff ;
....
In the placement section:
SSTACK INTO MY_STK;
Then:
STACKTOP 0x17ff
Then in main:
_Startup:
LDHX #__SEG_END_SSTACK ; initialize the stack pointer
TXS
This is just to be sure that the debug information clearing indicates where the stack is.
You still get that error. I think you should submit a service request.