Answer by dory2380 should be the accepted answer.
There is a button indeed, called "Register device" under Signing and Capabilities.
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I also face the same problem.
Phone:
iOS 14.7.1 (18G82)
Model: iPhone 7 (Model 1660, 1778, 1779, 1780)
XCode:
Version 13.0 (13A233)
Error:
Failed to prepare device for development.
Error Details:
The device rejected the pairing attempt.
Domain: com.apple.dt.MobileDeviceErrorDomain
Code: -402653035
Similar issue found: https://developer.apple.com/forums/thread/672986
Suggested solution in that issue: restart the phone
Didn't work for me
I'm still searching for a solution...
[UPDATE]
After updating the iPhone to iOS 14.8 (18H17), the error message changed.
New error message: Could not locate the device support files. Xcode could not determine the product version. If you are using a supported combination of Xcode and hardware, please reboot and unlock all devices (including the host mac), and respond to any outstanding pairing requests.
[UPDATE]
Tried to manually download and paste Device Support files from this GitHub repo: https://github.com/filsv/iPhoneOSDeviceSupport
Pasted it into the folder, still didn't work for me.
[SOLUTION]
I'm not exactly sure what was the problem, but it was regarding the podsfiles.
I use Flutter, and after flutter clean, flutter run did wonders, and the app started on the phone
Thank you WyFry, it really solved the issue and it really took 1-2 hours to see the changes. :)
I think I may understand why it solved the issue, but sometimes it amazes me how complicated and deep this whole app-store and the apple-release thing is.