This is affecting me, too. I am running my simulator as arm64, but my binary is Intel, since some libraries we use do not have arm64 simulator builds.
This is a huge painpoint for us, because we frequently have to copy long, random strings into the simulator. I've submitted a bug in Feedback Assistant: FB9905193.
It is still present in Xcode Version 13.3 beta 3 (13E5104i).