The reply by @saeedtkhapple@gmail.com seem to work perfectly. Just want to elaborate further.
Ensure you are running Xcode-beta. If you cannot find it on the App store ensure to download it from https://developer.apple.com/download/all/?q=xcode%20beta
If you are downloading and installing a new xcode-beta manually after downloading it, do this:
1b. Before installing it, delete the Developer folder in the path /Library/Developer. (Don't worry, it will automatically regenerate the folder when you install a new Xcode.
1c. Uninstall any previous Xcode and restart computer.
1d. Clear trash bin
1e. Install The new Xcode-beta you just downloaded, and move it to the application folder.
After installing Xcode-beta, check if you can now download the iOS 18 simulator from the newly installed Xcode-beta.
If you still have the error, then you have to manually download and install the simulator.
To manually install the simulator, follow these steps
Go to https://developer.apple.com/download/all/?q=xcode%20beta
Look for an iOS Simulator for Xcode-beta (e.g iOS 18.1 beta 6 Simulator Runtime)
Download the .dmg file
After downloading, open your terminal and run the command the following commands:
a. sudo xcode-select -s /Applications/Xcode-beta.app
b. xcodebuild -runFirstLaunch
c. xcrun simctl runtime add "/Downloads/iOS_18.1_beta_6_Simulator_Runtime.dmg"
d. xcodebuild -importPlatform "/Downloads/iOS_18.1_beta_6_Simulator_Runtime.dmg"
Open your Xcode-beta app and you should see that your installation is successful.
Note: I did this on my 2018 Macbook Pro. Also I used it while building a Flutter app for iOS
See https://medium.com/@pouyahallaj/how-to-manually-download-and-install-ios-simulator-files-for-xcode-on-mac-b146923fd198 for more info. it was a helpful resource i found when fixing my own issue.