I tried two projects - hello_world (..\Freescale\KSDK_1.0.0\demos\hello_world\kds\frdmk64f120m)- and my test project created according to KDS User Guide.
Both codes give the same results - MCU registers can be read but the software loops in WatchDog ISR endlessly and never goes to main().
Here are some more details:
the software endlessly loops in
00000568: b.n 0x568<Watchdog_IRQHandler>
and never jumps to main().
Thank you for any suggestions,