Once again I appreciate the reply.
1. This is unfortunately a custom boards based on the 1060.
2. I am unfortunately testing my own code.
3. SPI readback from off chip peripheral works fine when I "debug" from MCUXpresso but not when I boot after doing a MCUBootUtility download. See below as to possible lead.
4. I have a project based on the same 1060 board and same SPI peripheral which does work with axf/s19 downloaded through MCUBootUtility. I have mimiced it's RAM layout and flow through MCUBootUtility exactly on this troublesome project but without results. This may be do to a conflict introcuced in new code, see possible lead below.
5. A mistype on my part.
I seem to have some kind of lead.
I have a two GPIO outputs tied to GPIO_B1_02 and GPIO_B1_03 as seen here:

which control an SPI Chip Select Mux.
In the debug MCUXpresso version I seem normal stable behavior. You can see the CH0 and CH1 cycling between 4 peripheral SPI devices whose CS lines are attached through the mux output.

However, in the axf version run through MCU Boot Utility I see unstable behavior on these pins.

So, debugging/attaching the AXF/s19 which is running after reset from the MCU BootUtility shows error on SPI reads. I can see now that unstable behavior on the CS mux select is likely the issue.
However, I only see the behavior when the axf/s19 is run through MCUBootUtility and booted. However normally when run from "Debug" inside MCUXpresso, the lines are stable.
I have also traced the behavior if I attempt to debug from MCUXpresso if I make the following changes, attempting to link the program to SDRAM.

It's almost as if something is overwriting the GPIO2/7 peripheral at random, but only if I attempt to boot the board from an AXF/S19 run through the MCUBootUtility.
I have tried multiple things already.
I've attempted to move my stack and heap from DTC to SDRAM and increase it to 1MB each. I thought I might be overflowing into the GPIO region. However all other code seems to work fine. A full Wifi stack inits and connects to a remote Python client just fine everytime. Major stack overflow seems unlikely.
I have moved the Mux Select Pins from GPIO2 to GPIO7. Another attempt to move the GPIO address to see if it prevents overwrite. However, the same behavior results.
I had previously had DMA enabled on this LPSPI, but I turned it off and removed all associated code.
My hunch now, is that somehow XIP init is causing this issue.
Any ideas or thoughts?