This issue is still happening on Sonoma 14.4.1 (23E224) with XProtectPayloads 133 installed.
None of the workarounds are fixing this, and I am completely blocked from using the simulator.
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No luck on 13 beta "Ventura." They should start naming these versions "Probably going to break some core piece of functionality."
Issue persists after update to 12.3.1. Beyond infuriating.
This issue is driving me crazy. It would be nice of @apple to acknowledge that they are looking into it...