It seems that svc instructions invoke a jump to SVCall Handler only when interrupt is enabled. Otherwise it jumps to Hard Fault Handler. Is that correct ?
The SVCCall Exception is always enabled (it has no enable bit) and is taken whenever the SVC instruction is executed.
In this case your simulator has an error. Try doing some tests and you will find that if interrupt is not enabled the svc jumps to the Hard Fault Handler.
Which version of the tools are you using?
mdk304
We can't see this problem. Can we get a test project that shows the exact tool configuration (send to support.intl@keil.com).