It won't connect with reset active.
The code probably disables SWD interface, so you have only few micro seconds to establish the connection after releasing nRST, which is very difficult with a PC programmer, probably only dedicated programmers can do this.
However, did you try with BOOT0=1 ?
This will boot into SRAM, which contains nothing, so it should keep the SWD active.
Keep in mind not all PY32F002x devices have this pin... In that case, it's pretty much a dead end.
What are you trying to do? Repurpose the mcu? Just buy a new one, it costs cents...