Hi Jiri,
OK, problem is solved-- I think!
I was using the old v1.3 version of S32 DS. I've installed the v2018 R1 version of S32 DS.
I was unable to migrate the original project to the new DS. (I got dozens of cryptic error messages about broken links, etc.) I tried opening the old workspace with the new DS, exporting/importing project archive. Still got lots of error messages.
Finally I started from the example project closest to what I needed, created a new project from example using a new name, added the additional components I needed, then replaced the example main.c with my original main.c. It now seems to be compiling without the error.
In hind sight, I think what may have caused the problem is that I originally created my project by copy and pasting an example project that I had loaded into the workspace. In the course of renaming that, some references to the original example project were left behind that somehow caused the problem. I'm not sure why that caused corruption of the .args file, rather than messages about incorrect file references but I'll avoid copy and paste of projects in the future.
Thanks for your help.
Mark