This test failure indicates that the Simulink model could not be built. It can be due to a number of reasons, like a missing compiler or license, or a host-target communication issue. I suggest opening any Simulink Real-Time test model (like "xpcosc", for example):
open_system(fullfile(matlabroot,'toolbox','rtw','targets','xpc','xpcdemos','xpcosc'));
... and building it manually to get more details about the failure from the Diagnostics Viewer.
