issue is still present on Version 16.0 (16A242d), simulator Version 16.0 (1038), iOS 15.0 simulator runtime
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Sonoma, with Xcode 15 and iOS 16.4 was indeed helping but Xcode won't let me delete iOS 17 images to save disk space. Because if I do, then it says get iOS 17.0 and doesn't let me use iOS 16.4 emulator runtime image until I download the iOS 17.0 runtime image again wasting my disk space.
Also found that UITextView causes major memory leak(for 8MB text input pasted from clipboard, eats up 8GB RAM on SIM and OOME on device (3GB RAM limit per app)) when font is set to custom scaled font. This is not reproducible on iOS 16.4 Sim, but is reproducible on my iPhone 14 pro (17.0.3) and Sim (17.0.1) which I had to install to test this particular issue.
Already wasted 2 days on this thinking it is some memory leak in my implementation or my app, but found out that UITextView From UIKit itself is implemented badly such that it eats up RAM just like that. Had to create a minimal reproducible example to isolate that root cause is indeed in UIKit.
If at all Apple is listening, Please don't release untested SW, because your SW is the foundation for us devs to rely on and not go behind the rabbit hole of framework issues.