Hello Avenkat,
I have a few questions about your software/hardware setup:
- What board are you using?
- What Matlab version do you have? Can you show the Matlab Add-ons installed?
In order to have the best results you need to install the latest
- NXP_Support_Package_S32K3xx version 1.4.0
- Model-Based Design Toolbox for S32K3xx version 1.4.0
To the following location C:\MathWorks:

This should be the default location and you need to clean (delete) other folders like C:\Users\Your_User_Name\AppData\Roaming\MathWorks\MATLABAdd-Ons\Toolboxes\NXP_MBDToolbox_S32K3xx\ in order to have only one clean and good location, as in the picture above.
The following Add-ons need to be installed on your PC:

Set the default path in Matlab, using the Set Path window --> Default --> Save --> Close:

Then navigate to C:\MathWorks\Toolboxes\NXP_MBDToolbox_S32K3xx and run the path script file mbd_s32k3_path.m in the Matlab location:

The output should be as in the picture above, with no errors.
Let me know how it works after you follow the steps above,
Stefan V.