We are seeing the same issues with Ventura 13.6.6, tested with XCode 14.3 and 15.2.
Additionally if we select "Allow" in the firewall dialog, the application freezes (?).
This solution may be helpful: https://tomsoderling.github.io/Disable-iOS-simulator-connections-popup/
The script in the linked post adds a Firewall exceptions for both XCode and the iOS simulator, this seems to be enough to stop the firewall from prompting, even if the iOS app does not have a stable DR. We have tested this and it works fine.
The post also mentions: "For whatever reason, these two firewall exceptions will be reset whenever you restart your Mac, so put this script in a handy place because you’ll need to run it again."
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The bug report does not seem to be available ?