. "Reset target on launch" asserts HRESET to the target, thereby resetting the hardware. In most cases this is a required step, but where you don't want to assert HRESET or where your Target Initialization (.cfg) file does this for you with the "reset 1" command, you can do without this option enabled.
"P10xx-P20xxRDB_P1011_jtag.txt" JTAG Configuration file is required by 8.8 CW PA for all single-core P10xx processors. Please load the “P20xxRDB_P1011_jtag.txt" JTAG Configuration file in your USB TAP configuration panel you mentioned about.
1) Set MACCFG1[Rx_Flow] && MACCFG1[Tx_Flow] to 1 2) Set RCTRL[LFC] to 1.