Hi vinaymanikkoth,
Follow me try again:
1. SW7 1-0FF, 2-OFF, 3-OFF, 4-ON
2. debug your iled_blinky project again:

My log:
Tue Nov 17, 2020 17:44:25: IAR Embedded Workbench 8.50.6 (C:\Program Files (x86)\IAR Systems\Embedded Workbench 8.4_2\arm\bin\
armproc.dll)
Tue Nov 17, 2020 17:44:25: Loaded macro file: C:\Program Files (x86)\IAR Systems\Embedded Workbench 8.4_2\arm\config\debugger\NXP\
iMXRT.dmac
Tue Nov 17, 2020 17:44:25: Loaded macro file: C:\Program Files (x86)\IAR Systems\Embedded Workbench 8.4_2\arm\config\debugger\NXP\
iMXRT_Trace.dmac
Tue Nov 17, 2020 17:44:25: None of the application was placed in flash memory.
Tue Nov 17, 2020 17:44:25: Downloaded C:\KerryPC\IMXRTCode\Practice\RT1060\SDK_2.8.5_EVK-MIMXRT1060\boards\evkmimxrt1060\
demo_apps\led_blinky\iar\debug\iled_blinky.out to flash memory.
Tue Nov 17, 2020 17:44:25: 0 bytes downloaded into FLASH (0.00 Kbytes/sec)
Tue Nov 17, 2020 17:44:25: Loaded macro file: C:\KerryPC\IMXRTCode\Practice\RT1060\SDK_2.8.5_EVK-MIMXRT1060\boards\evkmimxrt1060\
demo_apps\led_blinky\iar/evkmimxrt1060.mac
Tue Nov 17, 2020 17:44:25: Loading the CMSIS-DAP driver
Tue Nov 17, 2020 17:44:25: Probe: CMSIS-DAP probe SW module ver 1.21
Tue Nov 17, 2020 17:44:25: Probe: Connecting to DAPLink CMSIS-DAP:02290000060b08dc00000000000000000000000097969905 firmware v.1.10
Tue Nov 17, 2020 17:44:25: Emulation layer version 4.67
Tue Nov 17, 2020 17:44:25: Notification to init-after-power-up hookup.
Tue Nov 17, 2020 17:44:25: Connected DAP v1 on SWD. Detected DP ID=0xbd11477.
Tue Nov 17, 2020 17:44:25: Notification to core-connect hookup.
Tue Nov 17, 2020 17:44:26: Connecting to TAP#0 DAP AHB-AP port 0 (IDR=0x4770041).
Tue Nov 17, 2020 17:44:26: Recognized CPUID=0x411fc271 Cortex-M7 r1p1 arch ARMv7-M
Tue Nov 17, 2020 17:44:26: Set cacheable access on AHB-AP port 0 (HPROT=0xeb000000).
Tue Nov 17, 2020 17:44:26: Debug resources: 8 instruction comparators, 4 data watchpoints.
Tue Nov 17, 2020 17:44:26: LowLevelReset(system, delay 200)
Tue Nov 17, 2020 17:44:26: CPU status - IN RESET
Tue Nov 17, 2020 17:44:26: FlexRAM configuration is restored
Tue Nov 17, 2020 17:44:26: DCDC trim value loaded.
Tue Nov 17, 2020 17:44:26: Loaded debugee: C:\KerryPC\IMXRTCode\Practice\RT1060\SDK_2.8.5_EVK-MIMXRT1060\boards\evkmimxrt1060\
demo_apps\led_blinky\iar\debug\iled_blinky.out
Tue Nov 17, 2020 17:44:27: 10922 bytes downloaded and verified (12.25 Kbytes/sec)
Tue Nov 17, 2020 17:44:27: Download completed and verification successful.
Tue Nov 17, 2020 17:44:27: LowLevelReset(software, delay 200)
Tue Nov 17, 2020 17:44:30: Target reset
Tue Nov 17, 2020 17:44:30: FlexRAM configuration is restored
Tue Nov 17, 2020 17:44:30: DCDC trim value loaded.
Tue Nov 17, 2020 17:44:30: INFO: Configuring trace using 'SWO,ETB' setting ...
Tue Nov 17, 2020 17:44:30: Trace: Using ETMv4 at address 0xe0041000
Tue Nov 17, 2020 17:44:30: Trace: ETMv4 is already powered-up (TRCPDSR=0x3)
Tue Nov 17, 2020 17:44:30: INFO: SWO trace mode is not supported by the probe (use I-jet/I-jet-Trace probe) - trace is disabled.
In fact, this is no relationship with your external hyperRAM, it should work.
Wish it helps you!
If you still have questions about it, please kindly let me know!
Best Regards,
Kerry
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