SVC dynamic model

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I would recommend to model the SVC as a switched shunt or a FACTS in load flow and use a dynamic model from the library.

Modeling an SVC as a generator in PSSE was necessary 40 years ago, but is quite obsolete after introduction of switched shunts and FACTS in PSSE.

Choose CSVGN1 or 5 from generator model library. Set bus connected with SVC to type 2 set the generator Z-source value to bigger value ie 0+j999 puto insure your gen is not current source. Don not use Generator step up transformer.

I would recommend one of the WECC SVSMO models.They are a better representation of actual equipment.
https://www.wecc.org/Reliability/WECC...