I have tried shutting down wifi/bluetooth or both, it's still not working for me :-(
The directory /Users/me/Library/Xcode/ doesn't even exist for me yet.
All my devices are upgraded to the latest version (except my mac only has latest Big Sur).
I have paid for Apple development program but I haven't been able to debug AR apps on my iPhone yet because of this (sometimes get the warning to reconnect it, still Xcode doesn't respond when I do... yet another bug??)