I guess you are trying to program the CCG3 device on CY4531. You should follow the operation guide in the CY4531 kit guide:
Ensure that the voltage selection jumper (J3) is set to 5 V (pins 2 and 3 of jumper J3 on the CCG3 daughter card are
shorted). Also, ensure that the I/O supply selection jumper (J4) is set to VDDD of the CCG3 device (pins 2 and 3 of
jumper J4 on the CCG3 daughter card are shorted).
Connect the USB Type-A to Mini-B cable from host PC to CCG3 daughter card
Config is correct. Any clues about that error? "Error: VDM response read failed on PORT:0"
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This Error usually will show up because the device connected did not enable the corresponding macro in the code which casue the VDM communication failed. I suggest you program the chip with the original hex file and try again.