Not really, there are tons of 3rd parties out there that require to exclude arm64 simulator support.
I have the exact same issue for a few days now and the problem occurs with ASWebAuthenticationSession and also with SFAuthenticationSession.
It wasn't an issue in XCode 15.4, but it's an issue in XCode 16.
I dug in the code of one such framework and as soon as you call "start" on those sessions, they get stuck like in the image above.
We cannot update all the 3rd parties to support arm64 sims, nor is this an official requirement.
Basically this kills all Intel based macs, which don't even have arm64.