The same is happening to me on Xcode 12. Can we get some help from Apple here?
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I've figured it out. I can select an entitlement per configuration in build settings.
Nope, the 10MB limit is referred to uncompressed binary size.
When can we expect TestFlight to start accepting builds with App Clips? Currently, upon submitting we get error message about unsupported thing.
You need to create a new build phase "Embed Pods Frameworks" and define the correct path to your app clip's shell script. See how it's done in your main app.