Hi SM,
The security of the device is determined by the image and the security options selected in the programmer. Did you select Unsecure before programming?

The Mass Erase Now button mass-erases the device. A mass-erased XEP is secured since the security area is blank. The Mass Erase Now button does not program the security area (to avoid wear on the chip).
You have to select the mass erase option for programming to a secured device:

I'm sorry the error dialogue is unclear.

Mass-erase is described here:
USBDM-Flash-Programmers: Flash Programmers Details
bye