Thank you, @ssmith_c . I'm struggling with the same issue now, and I couldn't get any support but you. I couldn't access the bug you referenced. What was it about ?
As I inspected the details of the Xcode signing process, I saw the app sandbox entitlement is stripped in the progress between clicking the distribute button ( in the Xcode archiver ) and sending it to the Apple Store connect. The entitlement is present before that, which I can see when I inspect the archive artifact ( it is embedded inside the DEXT executable ).
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Thank you @ssmith_c. I had followed the same steps before the forum post to diagnose the problem, and we both observed the same results. Unfortunately, I am having a hard time explaining this to the App review team. It has been two weeks. I requested code-level support, appeal, and rejection clearance, but these are not working as they should. At this rate, it may take a month for them to admit they are wrong, and a simple sorry shouldn't be an answer to the financial losses caused by the delay of the software to market.
It has been three weeks, and I've lost faith that they can solve it. The problem that bothers me most is that I couldn't reach/find anyone from the technical level support team who knows about these important concepts.
I know these programming areas are not very popular, but I think they are still important, and you have to keep some people in the support teams who are knowledgeable about these types of projects.