You do not say what the issue is that you are having with the code modified like your screenshot.
Your project type is All native Libraries which means that a .dll will be created for each source program in your project.
Is this what you want?
If you are calling one of these .dlls from a main program in an .exe project then you will need to set the PATH to indicate the location of these .dll files in the build folder of the .dll project.
You can set this under Run-->Debug Configurations and then click the Environment tab.
Modify the PATH to include your projects output folder:
When you debug the main program it should now find the subprogram .dll and debug it accordingly.
You may have a problem if the subprogram is not also compiled with the directive DIALECT"RM" as this changes the default call-convention used.
You may wish to remove that directive and try again...