There's also a setting in Xcode 16:
Editor > Canvas > Use Legacy Previews Execution
This allowed me to use iOS 18 simulators for previews.
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Facing the same problem. For us it seems to be related to the Project setup using Kotlin Multiplatform. Just downloading the example project from https://kmp.jetbrains.com/#newProject using native SwiftUI causes the same error. Maybe this has something to do with dynamic frameworks?