Experiencing the same issue. Have tried multiple phones, multiple versions of both XCode and the CarPlay Simulator and, of course, I've disabled Personal Hotspot etc. Have managed to get it to start successfully two times, and during those sessions, it has worked flawlessly. All other times I've tried (100+ by now), CarPlay starts to boot (e.g. default screen turning into black, and Device under Devices menu turns green) for about 3-5 seconds, and then returns to the default screen again.