Initially I had posted that the workaround didn't work, but I had put the following variables with the wrong names
let bundleNameIOS = "LocalPackages_TargetName"
let bundleNameMacOs = "PackageName_TargetName"
And I had forgotten to declare the resources in Package.swift
resources: [.process("Resources")]
I confirmed that it is working on XCode 12.4 and XCode 12.5 Beta
Thanks!