Kevin
I think that you need to load the debugger (rather than the PEMicro FRDM-KL26Z Mass Storage App , which tends to be pre-installed in older kits ).
You ca get this from the P&E web page (click on the HTML link when the board appears as a hard drive), where it also eplains how to update it (just power the board with the reset button held down and drag and drop the new code to the disk).
I have attached the one that i use (may not be latest but works well).
Regards
Mark
Kinetis: µTasker Kinetis support
KL26: µTasker Kinetis FRDM-KL26Z support / µTasker Kinetis Teensy LC support
For the complete "out-of-the-box" Kinetis experience and faster time to market