I've also been seeing this issue since Xcode 14.3. I believe it's a bug in Xcode's embeddedBinaryValidationUtility tool. They changed the structure of the build directory in some odd ways and introduced symlinks but never patched embeddedBinaryValidationUtility.
joshpeek
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My workaround is disabling hardened runtime in Xcode Cloud using a ci_scripts/ci_pre_xcodebuild.sh script:
#!/bin/sh
set -ex
if [ "$CI_PRODUCT_PLATFORM" = 'macOS' ] && [ "$CI_XCODEBUILD_ACTION" = 'build-for-testing' ]; then
sed -i'~' 's/ENABLE_HARDENED_RUNTIME = YES;/ENABLE_HARDENED_RUNTIME = NO;/g' \
"$CI_WORKSPACE/$CI_XCODE_PROJECT/project.pbxproj"
fi
Hope others find this useful until the issue is fixed.