Hi,
Thanks for your feedback. Seen the S32G2 RM, we found the following note [Page 979, S32G2 Reference Manual, Rev. 7, February 2023]:

Which mentioned that if the DIV_STAT bit stays at 1, then the problem might be related to the selected clock source, and 2 steps are shown on how to change if that happens.
As for the configuration the mux itself, we see that Figure 130 and 131 under the RM [Page 1161 & 1163, S32G2 Reference Manual, Rev. 7, February 2023] show the expected flow to configure the CLK switch, we understand that not all steps are being followed under the pseudo-code shared with us.
Can you confirm that following the steps provide a different outcome?
Please, let us know.