This works for me too, but only for the "iOS Team Provisioning Profile". When I try to validate / distribute the app, the "iOS Team Store Provisioning Profile" is used, which unfortunately doesn't include the entitlement.
Or do you have configured a profile for your app? I thought when using Cloud managed certificates, neither a custom distribution certificate nor a profile is needed. At least it wasn't until I enabled the entitlement in the App ID.
chkpnt
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You need to enable the entitlement in your App ID.