MCS_STEP, MCS_DUMP, MCS_HANDSHAKE etc. come from the ICD (In-Circuit Debugger) in MicroCode Studio.

They only get added when you click the "ICD Compile Program" button.

When you compile a program for ICD, it will not run unless you are set up to use the ICD. (Serial connection to the PC).

If you use the normal "Compile Program" or just "Compile" buttons, the program will probably run better.

If you do not see a "Compile Program" or "Compile" button, right click on the toolbar and check the "Compile and Program" option.
You can turn off the ICD toolbar so you don't get confused in the future.