Hello,
I think the reason may be that S32DS tries to erase and then write to UTEST, but the UTEST can't be deleted. Is there any missed step to tell DS32 not to erase before writing the DCF record?
That could be a possible explanation. I never used PE for programming UTEST, we use Lauterbach debuggers instead.
I cant speak for PE programming procedure, but if the script try to erase first then the process will be aborted.
But the alternative algorithm target the UTEST, so the script should not erase the micro. Just reprogram it.

You can also try it with PE micro GUI according to the guide bellow:
https://community.nxp.com/t5/S32-Design-Studio/MPC5777C-update-DCF-record/m-p/791557
Best regards,
Peter