Hello Darwin Smith:
I guess you are using a custom board for the K02. If that is the case please revise that the NMI pin (PTA4) is not in low state by an external signal during Power-ON / Reset. If possible place a pull up resistor.
Then also related to the NMI pin there could be an issue in debug mode, see this document by colleague Alistair:
Interrupts appear to be disabled when debugging.pdf
Let us know if the issue persists.
Regards!
Jorge Gonzalez