I'm having the same issue here.
I found out a temporary fix (I'm running on Beta 1):
If you manually copy the file to '/Users/username/Library/Developer/CoreSimulator/Devices/B20BF74D-1CB2-497A-9FA5-0752FD1020DB/data/Containers/Shared/AppGroup/BF5086D7-493D-4EA0-B60C-C85BBEFB550F/File Provider Storage/9A11AF58-870C-413B-9EEB-E5A2133296CB.jpeg' then it works.