This is happening for me in Xcode 13 as well (including Xcode 12.5.1) for simulators >= 14. I can get pasting to work on iOS 13.7 simulators. I have an M1 Macbook Pro 13". I am not running Xcode in Rosetta mode. I have also reinstalled Xcode 12.5.1, and like I said, even with Xcode 13, this is still a problem.