Hi again Alice,
Well, I have bitten the bullet and uninstalled everything, KDS, extra support for Kl03, toolchain etc...
In fact I removed everything, including the entire content of the KDS workspace. ( Of course: I first made a backup of my project's directory in another location :smileywink: ).
Then I reinstalled everything again which took a couple of hours.
Then I created a new Kinetis design studio project using with the same name as my original.
I setup the required Debug configuration and was able to correctly build and debug the template application.
Next step was to import all source files from my backup, including the "ProcessorExpert.pe" file.
The latter file required "refreshing" but once that was done I was able to build my original application.
Then I tried debugging it and what do you know: it works a treat now :smileyshocked:.
My best guess is that something went wrong in the .metadata folder or somewhere in the project folder's config files when the system crashed.
The fact that it now works again proves there was nothing wrong in my source code or the processor expert file.