Same issue as above on iPad, but solved it baby:
Turning Developer Mode on/off.
Clear Trusted Computers on iPad
Rebooted both MacOS and iPadOS.
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Might try resizing the image outside of Xcode and try again. Don’t know if it a bug, but I seem to have same issue and if I shrink the image down using Snagit, it displays. Don’t know the ex@ct reason.
Came across MacWorld article that explains this and it looks like the DATA volume is created automatically along with the OS volume, so all is good.