Hello Amit:
Thanks for considering my suggestions. About your comments and some more inputs:
5) This should not be critical, but try replacing that 1K resistor with one of 4.7K - 10K. Also confirm that you have the R2 10K pull - up resistor connected to pin 21, and measure voltage in that pin to verify that it is always in high level.
Now, the 1.64 V is definitely not correct, the value should be near the 3.3 V when not asserted. This seems to indicate that the MCU is constantly resetting. You need to watch that pin with an oscilloscope.
If the device is resetting, this may solve the issue:
- Make sure to select "Always mass erase on connect", and select a not so high debug frequency (e.g. 0.10 MHz).

Then follow the next steps:
1) Disconnect the board from your 3.3 V source.
2) With a jumper force the reset pin to a low level (GND) and hold it.
3) Power on the board (connect the 3.3 V source). Do not release reset yet.
4) Start a debug session and as soon as it is starting release the reset button.
Try this more than once.
Additionally, you could also try mass erasing the K20 device from the Flash programmer. Just open the programmer, select proper connection and specific flash configuration file and then click on "Erase Whole Device".

If the Erase is successful, then you should be able to debug.
Let me know what you find.
Regards!
Jorge Gonzalez