I have the same issue on xCode 12.5. No fix found as of today. Did you find anything?
bakedPotato
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Yeah, my app is live now. I had 2 apps, one was already live and one was in development, both were facing the same issue.
Here's what I did
In the live app:
I fixed the developer action needed error in the IAP's by just adding a random character in the localization title, and then saving, then changing it back to the original name and saving again.
This time it changed to waiting for review. If you submit the app for review while your IAP's are in review, they won't load for apple testers as they test in production. So I waited 3-4 days, and when my IAP's were approved I submitted my app and everything was pretty smooth after that
In the Dev app:
I thought I'll wait for the IAP's to approve for the development app just like the live one. I did the same thing and waited for a week, the IAP's never even went in review. It was always ready to submit. After a week I realized that when submitting for the first time, the IAP's are reviewed with the containing app. So basically I did nothing and submitted my app again after a week of fixing the developer action needed errors and Its nor approved and live :)