I'm using S32DS for ARM to develop firmware for S32K1xx on Windows 7. The S32DS environment has been working for quite long. During a debug session the launch did not started as expected but stuck at 98% of loading. It was left to run overnight and the behavior persists ever since.

This behavior appears have nothing to do with the debug tool (I'm using PE Multilink but I have also tried other interfaces). The same interface can continue to work in IAR EW.
I've also tried a blank new workspace but the behavior is the same except the freeze occurs at 99%.
Any suggestion to what can be done?
Jill