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TMDSCNCD28379D: External Mode not working (in Matlab Simulink)

Part Number: TMDSCNCD28379D

I moved from 28335 to 28379D and I am trying to enable external mode. I am using  TMDSDOCK28379D and Matlab R2018a and when trying to run External mode I get the following error message:

*** Debug Session Name: Texas Instruments XDS100v2 USB Debug Probe_0/C28xx_CPU1 *** Board Name: Texas Instruments XDS100v2 USB Debug Probe_0 *** CPU Name: C28xx_CPU1 *** Connecting to target... *** Loading the program to the target... *** Program is running. *** Disconnecting from target... *** Terminating debug session... *** LOAD & RUN DONE. ### Successful completion of build procedure for model: LED_GPIO31and34_2 ### Creating HTML report file LED_GPIO31and34_2_codegen_rpt.html
Build process completed successfully
action: EXT_CONNECT
Error occurred while executing External Mode MEX-file 'ext_comm': Failed to connect to the target. A time-out occurred while waiting for the connection response from the target. Possible reasons for the time-out: a) The target is not switched on. b) The target is not connected to your host machine. c) The application for the model is not running on the target. You might have clicked the Stop button. If the Run button is not dimmed, click it. Otherwise, click the Build button, which downloads and runs your application on the target.
Unable to connect to the 'TI Delfino F2837xD' target for 'LED_GPIO31and34_2'.

I am connected to the PC via USB cable to A:J1 on the controlCARD and the docking station is powered from a 5V supply on J1.

On the Matlab Answers site majority of the questions and answers are for LaunchPad F28379D, but even if I do the recommendations (change Rx/Tx GPIOs from 29/28 to 42/43 and set oscillator frequency to 10 MHz), it still does not work.

When selecting External mode and pressing the Run button I can (1) Load the application code to the controlCard (I see the signals on the scope) but (2) I cannot get into External mode. Boude rate is the same for COM port and Simulink.