Sorry, but I didn't find a solution for this.
Q. Why does the debugger say it's hitting an illegal breakpoint when executing the labs, and the Run button keeps flashing on and off?
A: This is a bug in the OSBDM where it loses debug connection when it encounters a stop instruction. A fix will be available soon. The code is still executing so it will not affect the running of the labs.
BTW Here is a work around.
Patch
C:\Program Files\Freescale\Freescale MQX 3.3\mqx\source\psp\coldfire\dispatch.cw:
; End CR 1169;; stop #0x2000 <-- Comment out move.w #0x2000,SR ; Add this.
And rebuild MQX.