Hello andyknitt,
I think this might be due to the fact that it can't find libwinpthread-1.dll in the path. To check if this is the cause, you could:
OPTION 1)
Manually add to your PATH system variable the path to libwinpthread-1.dll
{Install Root}\NXP_MBDToolbox_S32K1xx\code\tools\gcc-6.3-arm32-eabi\bin
Note: after you've added this manually, you'll have to restart MATLAB (it has to reload the system variables). This change is permanent from this point onward.
OPTION 2)
Set the PATH variable in MATLAB - note that this change is only made for the running instance; once you restart MATLAB or just open another instance, the changes won't be visible and you'll have to re-run the command. The command should be
setenv('PATH',[getenv('PATH'),';<_YOUR_PATH_TO_>\Toolboxes\NXP_MBDToolbox_S32K1xx\code\tools\gcc-6.3-arm32-eabi\bin']);
Note: replace <_YOUR_PATH_TO_> with C:\My Documents\MATLAB\Add-Ons (if that is your path to the toolbox- at least that is what it looks like from the log you've attached).
As a test, I would suggest to try option 2 as it requires no restart needed, open the model and try and build it again. If it works, then go and apply step 1) to make it permanent.
Please let us know if this does the trick or if you're still having trouble with it.
Kind regards,
Razvan.