The mail accidentally used an invalid address.
There's information in another thread what to do:
https://forums.developer.apple.com/forums/thread/763163?answerId=810365022#810365022
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"Repeated Build & Run targeting iOS 16.1 and later simulator runtimes may sometimes result in a hung launch. (101990080)"
Not sure where that 16.1 comes from. For us it happens on older versions than 16.1 too...
The suggestion from Apple in the FB is to use audiovisualBackgroundPlaybackPolicy = .continuesIfPossible.
Reported FB12038560
My experience is the same. It reproduces when running Xcode in Rosetta mode.
Sadly I have to run Xcode in Rosetta mode because of a slow 3rd party... (Hi Google).
The playback issue seems fixed in iOS15.1 beta1/2, except for a new issue related to HDMI mirroring...
I don't know the security requirements of your service but maybe you have the option of temporarily downgrading to normal "http" key delivery instead of FairPlay?
"Quickly Diagnosing Content Key and IV Issues Quickly Diagnosing Content Key and IV Issues"
https://developer.apple.com/library/archive/technotes/tn2454/_index.html
Per our understanding this issue only happens with transport stream (mpeg2ts) based HLS.
cmaf based is not affected.
(It also affected Safari15 in Monterey until Beta 7).
In iOS15 Beta1/2 the issue is fixed, however there are still issues when mirroring over HDMI that require the "GPU process: Media" to be off...