OK, reviewing my NXP 1060 notes, I had the same problem with 1060 eval board. I used GUI Flash Tool to erase flash.
After a couple of tries with SW2 settings, this worked:
1) power off eval board
2) set SW2-7 to ON
3) power up and from IDE run GUI Flash Tool and select "erase flash" tab, and RUN (took about 25 seconds to erase flash)
4) power down eval board and set SW2-7 back to OFF
5) power up eval board and upload a working program