Hi. IP address 169.254 is probably related to your issue.
My guess is you are using a Windows computer and you have a 169.254.x.y IP address?
This is an invalid IP automatically assgined to a windows computer when it cannot find a DCHP server. From the web:
When a Windows computer isn't able to communicate with the DHCP server, something called Automatic Private IP Addressing (APIPA) kicks in . It assigns the computer an IP address that starts with 169.254.
My 2nd guess is you have connected directly from the computer to the PLC?
Assuming all of the above, you should set the IP address statically to something like 192.168.x.y and a mask of 255.255.255.0 (or smaller) THEN set the IP of the PLC to an address in the same range.
e.g.:
computer 192.168.10.1, 255.255.255.0
PLC 192.168.10.2, 255.255.255.0
Then set the config address field to match the IP set for the PLC.
FYI, I'm using Windows computer. I am running the whole simulation using the PLCSIM, therefore it was connected to a local network called 'Siemens PLCSIM Virtual Ethernet Adapter'.
Based on your suggestions,
I changed the IP address from both computer and PLC to 192.168.x.y
Dumb question, but I understand that you are using PLCsim advanced. Are you able to ping downloaded PLC from your windows machine? Sometimes PLCsim advanced bricks, and it allows you to download software from TIA portal but doesn't allow external connections.