This answer should be put on top of this thread along with the required step on the command line.
defaults write com.apple.dt.Xcode DVTEnableCoreDevice enabled
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Yes, that was my understanding as well. But I experience a Domain=NSURLErrorDomain Code=-1004 "Could not connect to the server." in my App Clip once NLC is enabled. Everything else on that device works as expected, the parent full app, Safari etc.