sudo xcodebuild -runFirstLaunch will install additional components from the command-line.
mkflint
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Also filed FB13158101
Thank-you, everyone, for this really useful thread!
I do not recommend unpairing the Watch from Xcode - I did that, and now I cannot pair it again.
Edit: I had success following this post: https://developer.apple.com/forums/thread/734694?answerId=786153022#786153022