I have developed a program for ATmega168 using Atmel Studio 7.0 and Atmel-ICE as debugging interface.
The development was done on a 28DIP package, since it's easy to work with it on a breadboard. Moving from the prototype to PCB, I chose a 32pin TQFP package instead of 28DIP (please see the part numbers below).
I can program the PCB device with Atmel-ICE without any warning or issues after reading its signature. The device gets flashed, however it does not do anything afterward as if the program isn't there. I wonder if anyone else has seen this?
ATMEGA168-20AU-ND, TQFP 32pin package.
ATMEGA168-20PU-ND, 28DIP package
The default TQFP package had HIGH.WDTON (Hardware Fuse Watchdog always on) and that was not the case for my prototype where I did compare and match in Timer1 to write an interrupt driven delay function. Turning watchdog on was messing up my delay function, and when I turned it off, the 32 pin package also did what I expected. Thank you all for your responses.
Hamid