Plato does have an option to use FTN77 rather than FTN95 but this option is no longer configurable via the Settings dialog and has not been visible for many years. It can still be selected manually in Plato.ini which can usually be found in C:\Users\UserName\AppData\Roaming\SilverFrost\FTN95. The setting is identified by the string 'UseFTN77' and has the value 0 or 1.
The Settings dialog has an option to 'Integrate with SDBG/SDBG64' and you can find this under Miscellaneous. When selected, Plato will display the code otherwise Plato launches SDBG/SDBG64 as a separate application. The integration works differently depending whether you are using Win32 or x64.
When integrated, for Win32, Plato 'talks' to SDBG which is running in the background. For x64, the source code for SDBG64 is built into Plato which runs as one application.
If you are using a 'Project' then it is possible that the dependency checking is not working correctly and this can happen if you have an unreasonable cyclic (i.e. recursive) dependency in your modules and/or INCLUDE files. You can switch off dependency checking directly from the Project menu and this should 'fix' the failure but it would be better to work out why the dependencies have gone wrong. When this happens you will find that applying 'Clean' to delete all the object files leads to a situation where a 'Build' will not work in one go or (in extreme cases) will never complete. In the latter case you must either find and remove the cyclic dependency or temporarily comment out parts of the code in order to complete the faulty 'boot-strapping'.