It may be related to this: https://developer.apple.com/forums/thread/747843
antonioprm
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I have a Git Repo tag that I apply to the top level folder of each Git working tree. I’ve never seen the behaviour you’ve described. I’m on macOS 14.3.1 with Xcode 15.2.
Good to know. There must be some other precondition then. I've tried Xcode 15.1 and 15.3 on macOS 14.3. I know this issue wasn't happening when I created this project a couple of months ago. But now it happens with every new and old project. The tag in question was the default Blue that Finder comes with.