How to resolve this norm constraint?

Look at Stephen Boyd’s answer at How to handle nonlinear equality constraints? for a heuristic convex-concave procedure (i.e., Successive Convex Approximation (SCP)).

However, as Johan Lofberg mentions in his comment at https://or.stackexchange.com/questions/5345/how-do-model-this-constraints-correctly , you are probably better off using a non-convex solver under YALMIP - that could be Gurobi as a global non-convex bliinear (quadratic) solver, or a general purpose global non-convex solver such as BARON or YALMIP’s BMIBNB. Gurobi may be a good way to go, provided there are no nonlinearitities in your problem other than quadratics (bilinear).

You can see some of my other answers on this forum in which I suggestion SCP may not be the way to go.