So yes, I tried OPBE now and I've got this:
stdcerr_0-1604690505749.png
As for the clocks table, it looks like:
stdcerr_1-1604690590141.png
One little thing that I realized is, Core clkock was at 120MHz with a little padlock and showed an error, I then double clicked on it in the clocks table, which removed the error (and padlock)and it then changed to 12MHz.
So with the above setup, it still gets stuck at
/* Wait for CLKST clock status bits to show clock source is ext ref clk */
while ((MCG->S & (MCG_S_IREFST_MASK | MCG_S_CLKST_MASK)) !=
(MCG_S_IREFST(kMCG_FllSrcExternal) | MCG_S_CLKST(kMCG_ClkOutStatExt)))
{
}