Following has fixed this issue for me.
#1 Login with your apple id from Xcode => Preferences => Accounts
#2 After step 1 from same screen click on "Manage Certificates" and then "+" icon to add one
#3 Try again with Simulator installation from components.
arora_ashu
Users receive reputation points by contributing quality content to the forums.
Posts include post and replies published on the forums.
Post authors can mark replies as Accepted to indicate successful solutions.
Apple Developer Forums admins can mark replies as Apple Recommended to indicate an approved solution
From
India