The only know issue with IIC module in the AW60 is the following:
"IIC Does Not Function When High Drive Strength Is Enabled on the IIC PinsSE127-IIC
Description
IIC operation requires open drain configuration but when the PTxDS bit associated with the IIC SDA or SCL pin is set for high drive strength (PTxDS = 1) the pin will be in complementary drive mode instead of open drain mode. This will cause IIC communication conflicts that lead to IIC malfunction.
Workaround
The PTxDS bits associated with the IIC SDA and SCL pins should be cleared for low drive strength operation. This configuration will ensure that the corresponding pin will enter open drain mode and IIC communications will function correctly. The IIC pull-up resistor in the final application may need to be modified to account for the lower drive strength of the SDA and SCL pins."
This fixed the problem along with changing the pull up resistors to 2K4.