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Comment on Xcode 12.5 on macOS 12: Code signing "MyAppExtension.appex" failed.
It's the exact same thing I'm experiencing, but it's all the Xcode projects. I have tried to create new project and I get the same code signing error, I have tried existing projects it's the same. I think it's not related to the Xcode projects, but something in macOS 12 that does not comply correctly with the Xcode 12 application. I will try in Xcode 13 beta 1 now and see if that changes anything.
Jun ’21