Hi,
I already answered via IM to you (or your colleague).
It looks that for some reason gcc is not visible for make. Here are suggestions what you can check:
he error message - error 127 means that gcc can be found. Please check if gcc is present in c:\NXP\S32DS.3.5.2\S32DS\build_tools\gcc_v10.2\gcc-10.2-arm32-eabi\bin\ folder and can be executed from commandline - try to run arm-none-eabi-gcc.exe --version command.
If the gcc is there and can be executed - check in project properties if environment path variables points to correct place. Here is settings on my side:
