I'm here to say that this has regressed significantly in Xcode 16. I installed the 16.1 RC this morning as well to see if that was any better, and no, it's much worse. I haven't gotten a single SwiftUI preview working in a project that has a local binary XCFramework dependency. Everything works fine if building a demo app for a device, but that's like 100x slower iteration time obviously. I didn't quite follow the static vs dynamic linking bit... I'm not sure there is even an option when it comes to binary XCFrameworks.