This issue seems to go away on my M1 Mac (Xcode Release Candidate) by running the following command:
/usr/libexec/PlistBuddy /Applications/Xcode-beta.app/Contents/Developer/Platforms/iPhoneOS.platform/Library/Developer/CoreSimulator/Profiles/Runtimes/iOS.simruntime/Contents/Resources/RuntimeRoot/Library/Wallpaper/Collections/Collections.plist -c "add order array" -c "add order: string 23EC2CF1-0188-49FC-B214-EC1AB37FE5C4"
This command was taken from a blog post regarding a similar issue regarding the iOS 16 simulator.
riccardo_p
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