It kinda magically cured itself. I think something needed to be approved and maybe that took some time even though the app was already in TestFlight? I opened a TSR and suddenly all was ok.
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Well seems to work ok for iOS projects and MacOS projects but I'm trying to create a watchOS project and that option doesn't exist there. Maybe I'm still missing something.
I should have clarified this post a little. I was able to do that for MacOS and iOS projects but I was trying to make a new WatchOS project and that did not have an objective-c option. I guess I could just use Xcode 14.(whatever) to generate the project and bring it into Xcode 15 but that seems kind of silly.
I have current watchOS obj-c projects and everything works ok in Xcode 15 except when debugging code on the watch itself (not simulator) console panel shows a direct LLDB interface.