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CC2651R3SIPA: Upgrade to SIMPLELINK-LOWPOWER-F2-SDK 7.40 and SYSCONFIG 1.20 breaks my code

Part Number: CC2651R3SIPA
Other Parts Discussed in Thread: SYSCONFIG,

Tool/software:

My code runs well under SYSCONFIG 1.18 and SIMPLELINK SDK 7.10.02.23

When I try to upgrade to the latest SDK version 7.40, I am required to also upgrade sysconfig. My sysconfig file before the upgrade looks like this:

After the upgrade I get the following error:

With Details shown here:

If I click yes to compatibility mode, I see this:

If I acknowledge and dismiss the error, Everything looks fine, except it no longer compiles and throws MANY sysconfig related errors on compilation (all seemingly missing files).  Here is a sampling:

Building file: "syscfg/ti_ble_config.c"
Invoking: Arm Compiler
"/Applications/ti/ccs1270/ccs/tools/compiler/ti-cgt-armllvm_3.2.1.LTS/bin/tiarmclang" -c @"/Users/xxx/CodeDevelopment/yyyV1_Firmware/BLE_CC2651R3SIPA/Debug/syscfg/ti_ble_app_config.opt" @"/Users/xxx/CodeDevelopment/yyyV1_Firmware/BLE_CC2651R3SIPA/Debug/syscfg/ti_build_config.opt" @"/Applications/ti/simplelink_cc13xx_cc26xx_sdk_7_40_00_77/source/ti/ble5stack_flash/config/build_components.opt" @"/Applications/ti/simplelink_cc13xx_cc26xx_sdk_7_40_00_77/source/ti/ble5stack_flash/config/factory_config.opt"  -mcpu=cortex-m4 -mfloat-abi=soft -mlittle-endian -mthumb -Oz -I"/Users/xxx/CodeDevelopment/yyyV1_Firmware/BLE_CC2651R3SIPA" -I"/Users/xxx/CodeDevelopment/yyyV1_Firmware/BLE_CC2651R3SIPA/Debug" -I"/Users/xxx/CodeDevelopment/yyyV1_Firmware/BLE_CC2651R3SIPA/Application" -I"/Applications/ti/simplelink_cc13xx_cc26xx_sdk_7_40_00_77/source" -I"/Applications/ti/simplelink_cc13xx_cc26xx_sdk_7_40_00_77/source/ti" -I"/Applications/ti/simplelink_cc13xx_cc26xx_sdk_7_40_00_77/source/ti/ble5stack_flash" -I"/Applications/ti/simplelink_cc13xx_cc26xx_sdk_7_40_00_77/source/ti/ble5stack_flash/controller/cc26xx/inc" -I"/Applications/ti/simplelink_cc13xx_cc26xx_sdk_7_40_00_77/source/ti/ble5stack_flash/inc" -I"/Applications/ti/simplelink_cc13xx_cc26xx_sdk_7_40_00_77/source/ti/ble5stack_flash/rom" -I"/Applications/ti/simplelink_cc13xx_cc26xx_sdk_7_40_00_77/source/ti/ble5stack_flash/common/cc26xx" -I"/Applications/ti/simplelink_cc13xx_cc26xx_sdk_7_40_00_77/source/ti/ble5stack_flash/icall/inc" -I"/Applications/ti/simplelink_cc13xx_cc26xx_sdk_7_40_00_77/source/ti/ble5stack_flash/hal/src/target/_common" -I"/Applications/ti/simplelink_cc13xx_cc26xx_sdk_7_40_00_77/source/ti/ble5stack_flash/common/cc26xx/npi/stack" -I"/Applications/ti/simplelink_cc13xx_cc26xx_sdk_7_40_00_77/source/ti/ble5stack_flash/hal/src/inc" -I"/Applications/ti/simplelink_cc13xx_cc26xx_sdk_7_40_00_77/source/ti/ble5stack_flash/heapmgr" -I"/Applications/ti/simplelink_cc13xx_cc26xx_sdk_7_40_00_77/source/ti/ble5stack_flash/profiles/simple_profile" -I"/Applications/ti/simplelink_cc13xx_cc26xx_sdk_7_40_00_77/source/ti/ble5stack_flash/icall/src/inc" -I"/Applications/ti/simplelink_cc13xx_cc26xx_sdk_7_40_00_77/source/ti/ble5stack_flash/npi/src" -I"/Applications/ti/simplelink_cc13xx_cc26xx_sdk_7_40_00_77/source/ti/ble5stack_flash/osal/src/inc" -I"/Applications/ti/simplelink_cc13xx_cc26xx_sdk_7_40_00_77/source/ti/ble5stack_flash/services/src/saddr" -I"/Applications/ti/simplelink_cc13xx_cc26xx_sdk_7_40_00_77/source/ti/ble5stack_flash/services/src/sdata" -I"/Applications/ti/simplelink_cc13xx_cc26xx_sdk_7_40_00_77/source/ti/common/nv" -I"/Applications/ti/simplelink_cc13xx_cc26xx_sdk_7_40_00_77/source/ti/common/cc26xx" -I"/Applications/ti/simplelink_cc13xx_cc26xx_sdk_7_40_00_77/source/ti/ble5stack_flash/icall/src" -I"/Applications/ti/simplelink_cc13xx_cc26xx_sdk_7_40_00_77/source/ti/ble5stack_flash/profiles/oad/cc26xx" -I"/Applications/ti/simplelink_cc13xx_cc26xx_sdk_7_40_00_77/source/ti/ble5stack_flash/common/cc26xx/menu" -I"/Applications/ti/simplelink_cc13xx_cc26xx_sdk_7_40_00_77/source/ti/ble5stack_flash/common/cc26xx/oad_efl_dbg" -I"/Applications/ti/simplelink_cc13xx_cc26xx_sdk_7_40_00_77/source/ti/common/cc26xx/bim/" -I"/Applications/ti/simplelink_cc13xx_cc26xx_sdk_7_40_00_77/source/ti/common/cc26xx/oad/" -I"/Applications/ti/simplelink_cc13xx_cc26xx_sdk_7_40_00_77/source/ti/drivers/nvs" -I"/Applications/ti/simplelink_cc13xx_cc26xx_sdk_7_40_00_77/source/ti/ble5stack_flash/common/cc26xx/rcosc" -I"/Applications/ti/simplelink_cc13xx_cc26xx_sdk_7_40_00_77/source/ti/devices/cc13x1_cc26x1" -I"/Applications/ti/simplelink_cc13xx_cc26xx_sdk_7_40_00_77/kernel/tirtos7/packages" -I"/Applications/ti/simplelink_cc13xx_cc26xx_sdk_7_40_00_77/source/ti/posix/ticlang" -I"/Users/xxx/CodeDevelopment/yyyV1_Firmware/Common" -DDeviceFamily_CC26X1 -DFLASH_ONLY_BUILD -DNVOCMP_NWSAMEITEM=1 -DHEAPMGR_CONFIG=0x80 -DHEAPMGR_SIZE=0x0 -DOAD_ENABLE -DRESET_EXT_ZW_FLASH_DATA=0 -gdwarf-3 -march=armv7e-m -MMD -MP -MF"syscfg/ti_ble_config.d_raw" -MT"syscfg/ti_ble_config.o" -I"/Users/xxx/CodeDevelopment/yyyV1_Firmware/BLE_CC2651R3SIPA/Debug/syscfg" -std=gnu9x @"syscfg/ti_utils_build_compiler.opt"  -o"syscfg/ti_ble_config.o" "syscfg/ti_ble_config.c"
subdir_rules.mk:30: recipe for target 'syscfg/ti_ble_config.o' failed
tiarmclang: error: no such file or directory: '@/Users/xxx/CodeDevelopment/yyyV1_Firmware/BLE_CC2651R3SIPA/Debug/syscfg/ti_ble_app_config.opt'
tiarmclang: error: no such file or directory: '@/Users/xxx/CodeDevelopment/yyyV1_Firmware/BLE_CC2651R3SIPA/Debug/syscfg/ti_build_config.opt'

Do you have a suggestion for how to make my working code compliant with the new SDK and Sysconfig?  What changed that would cause this?

Regards