Hi,
Have you been able to program the board at least one time?
I'd recommend you to perform the test below:
1) Open a new workspace
2) update the Pemicro plugin (v1.9.9....)

2) create a new empty S32DS project for MPC5777E and select Debug_RAM target instead of Debug. Build it and Debug_RAM target.
3) if step 2 works, select Debug (FLASH) Build target now and use Debug_Flash config
4) Are you using a custom board or NXP EVB? Is there any external circuit that can cause a reset while debugging?
This will help us to resolve this issue much faster.
Thanks,
Stan