When using IAR, one does not use PE Micro debugger, one uses the CMSIS DAP debugger.
Follow these steps as supplied by IAR.
1) disconnect the USB cable from the TWR-VF65GS10 if it has
been connected,
2) run and install the EWARM's .\arm\drivers\pemicro\PEDrivers_install.exe,
3) press and hold the reset button of the TWR-VF65GS10 until
you have reconnected the USB cable to its OpenSDA/Micro-USB
connector (J3)
4) copy the EWARM's .\arm\drivers\pemicro\OpenSDA\CMSIS-DAP_OpenSDA.S19
file into the drive E: TWR-VF65GS,
5) disconnect and reconnect the USB cable,
6) set your project's workbench menu "Project>Options>Debugger>
Setup>Driver" to "CMSIS DAP" and "Project>Options>CMSIS DAP>
JTAG/SWD>Interface" to "SWD",
This setup powers the Vybrid controller via the USB cable connected to J3.