When all else fails, reboot. When that fails, reboot the next morning. After the morning reboot the "installed" simulators were all gone from the list and I was able to reinstall them. All good now.
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This is what I get when attempting to delete any Simulator. This happens to be watchOS 10.2, but I tried with the other watchOS versions, VisionOS, and others.
I was having this issue late yesterday (US Eastern time). Two apps that share a distribution certificate. As of 30 minutes ago (8:30am) both apps are installing fine; same builds that failed yesterday. I hope this means Apple has fixed builds at their end, similar to the March issue.
I'm a dunce: When copying code from the dummy app, I didn't add the SelectionIntentHandling protocol to the class. Added and all is good.