I have the same error. I have the following structure (simplified a little), where the packages are local swift packages.
iOS Target
watchOS Target
watchOS Extension Target
Package A
Package B
Package C
The dependencies look something like this for the iOS Target:
iOS Target -> Package A -> Package C
When a scheme for the iOS Target is active, all previews work fine, but when I activate a "Package A" scheme to reduce the build time, then the Xcode Preview Agent crashes because Package A depends on Package C.