seems you are using a special Edition CodeWarrior, the limitation of this CW edition is 128k in Code Size.
your problem should be caused by this issue.
MQX is free. But in most time the MQX project is larger than 128k.
regarding to your issue, I would suggest downloading the latest CW v10.4 (plase download the evalution edition which has no limitation in code size for one month) for your testing.