Check your amf_config.ini file in the web root and see if the webroot path setting is corrupt it is probably missing the \ parts of the path. This is a known issue and hopefully it will resolve your problem.
Just one other thing, if the code generator works and you get a server disconnect when running your app then you may need to remove the port setting variable in the connection declaration at the beginning of your php service file.
I see that you are using MS SQL database. At present, we are supporting database introspection only for MySQL database.
However, you can still import a php service which connects to MS-SQL db. If you have not tried the "import" workflow yet, this article will be of help to you