Same here on macOS. My App ID configuration in the developer portal has WeatherKit checked in both "Capabilities" and "App Services". My Xcode project has WeatherKit added as a capability in "Signing & Capabilities".
Tolibi
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I have to correct me. Disabling "Connect via network" works for me, Xcode needed a restart.
Same problem here using Catalina. Disabling Connect via network (as mentioned above) doesn't help.
Xcode 12.3 is unusable. Thank you Apple.