After some experimenting and the suggestions above, I downloaded the Xcode 13.4.1 version, and started it. Next open the devices overview, and wait for the device to be "ready". This initializes the iOS 15.7 version for development I guess.
Next I could use Xcode 14, for development and testing on the device. Even without Xcode 13.4.1 running. (I haven't tried if this still works after a reboot)