Hello,
could you please clarify me following points?
1) Have you already installed update1?
S32 Design Studio for Power v1.1 - Update 1 available
2) Which debug probe you use?
3) Have you ever been able to connect to this microcontroller or to different one?
Make sure you do not have opened any other S32DS instance which also uses GDB server or any other application which uses GDB server.
Then please look at the thread below and update PeMicro debug interface (if you have already don't do that)
https://community.nxp.com/thread/448305
You can also try to uninstall Design Studio and install it one again together with update1 and PeMicro update.
Please let me know if my suggestions help you.
Regards,
Martin