Hi @Anushka_SS ,
Thank you so much for your interest in our products and for using our community.
Q1. Is connecting GPIO_AD_B0_04 to GND correct when not using Teensy bootloader chip?
A1: Yes, but please note that in Boot From Fuses mode, whether the ROM actually performs normal boot or instead jumps to serial downloader depends on BT_FUSE_SEL .

Q2. How to correctly program and boot MIMXRT1064 using its internal 4MB flash via DAPLink probe?
A2: For MIMXRT1064, the bootable image must be linked/programmed for the on-chip flash at 0x70000000, not 0x60000000. AN12290 explicitly states that RT1064 boots through FlexSPI2 and that the linker base address must be updated from 0x60000000 to 0x70000000 when migrating from RT1060 to RT1064.
https://www.nxp.com/docs/en/application-note/AN12290.pdf
I suggest you can refer to this application note for reference.
Q3. What fuse settings are needed to boot from internal flash at 0x60000000?
A3: The RT1064 on-chip QSPI flash boot address space is 0x70000000. So if your goal is to boot from the embedded flash, 0x60000000 is not the correct image base address for RT1064.
Best Regards
May Liu