Fix:
cd /Applications/Xcode.app/Contents/Developer/Platforms/iPhoneOS.platform/DeviceSupport
sudo ln -s 15.5 15.7
Xcode 13.4.1 contains DeviceSupport folders up to 15.5 and works with iOS 15.7 devices. 15.7 is missing in 14.0, it will try to use 15.6, which fails to prepare the iOS device for development. If we copy 15.5 to 15.7 or create a link, the 15.5 folder is used, which works for iOS 15.7. My iPhone 7 Plus is recognised instantly over the network, and
Developer menu appears in Settings.
gvalkov
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