Hi,
This is not the problem in your HW.
The underlined line is verification loop - waiting for successful mode change.
Check the Mode Entry module, and check GS register. Here you can see actual mode.
Most probably it is the DRUN (or your previous mode) instead of RUN0.
Configure your ME initialization correctly and you will pass this verification loop with no issues.
Peter
PS: it is always useful to state which device you are using.