Same here, was about to create a new post when I saw yours. Only difference is that I use a Macbook Air, also with M2 chip. Downloaded a fresh copy of Xcode in the hopes it would fix the issue, just to be slammed with the same error: New apps and app updates must be built with the public (GM) versions of Xcode 11 or later, iOS, macOS, watchOS, and tvOS SDKs. Apps built with beta versions aren’t allowed.
Sounds like it must be an issue on Apple's side.