I am also on 11.2.3. But it still could be that this issue first appeared after the update to 11.2. But I cannot exactly recall when the issue started.

I have the same problem as  jda-blue. But I know of the case. The problem in my project is that we have a swift package dependency that itself has a binary xcframework package. That package is configured to use the x86_64 version when the project is build for simulators and only uses the arm64 version when build for a device. This is why the build works with simulator when using rosetta Xcode and with a device when using M1 Xcode. Still the issue that the rosetta Xcode is not able to show the interface builder properly is quite sad. And this still is an issue in Xcode 15.5 beta 3.