I am having the exact same issue. And after trying to manually install the runtime, based on the errors I got I think the iOS 14.5 simulator runtime is just not compatible with macOS Sonoma. Out in the wild a quite large percentage of our user base is using iOS 14 and we just can't drop the iOS 14 support. I am really hoping that an update will fix this soon as iOS 14.5 is still a pretty recent version of iOS to just drop support out of the blue like that.
athan_kefalas
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