I'm using Xcode 16.0 seed 2, and tried your workaround. Does not resolve issue.
KapnKrunch
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I had the exact same problem today, and I ended up restoring my home directory using Carbon Copy Cloner's snapshot function. All was well, until I realized that almost every app was taking forever to launch (with most timing out).
The culprit? Apple's "Find My" servers were down and the Mac was busy thrashing to try to establish this connection. I turned off "Find My Mac" and everything sprung to life.