Intel® Cyclone® V GT Development Kit will fail to be configured when using compressed bitstream in the flash due to Intel® MAX®V has tied one of the MSEL bit to 0.
Modify the Intel® Max® V design on pfl_control.vhd which is under the "hdl" folder from the Development Kit installation folder.
Go to line 397, you will observe (msel <= "ZZZ0Z";). Change it to (msel <= "ZZZZZ";).
This will enable the MSEL to be selected according to the DIPSW (DIP Switch) on the board. Ensure the correct MSEL selection according to its configuration mode.