Just found the solution to my issue. New error message was a lot more helpful. I had to enable Outgoing & Incoming Network in the Capabilities section; although it worked fine on the iPad simulator without that 🤷♂️
2022-07-13 15:03:18.680914+0100 PlayWithWeatherKit[71444:1195452] [] networkd_settings_read_from_file Sandbox is preventing this process from reading networkd settings file at "/Library/Preferences/com.apple.networkd.plist", please add an exception.
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It's a curious change because the whole /usr/lib/arc directory is gone in Xcode 14.3 beta. I ran into it yesterday when building a macOS project that had min target of 10.9, and got an error that libarclite_macosx.a was missing. (And also warnings that the deployment target 'MACOSX_DEPLOYMENT_TARGET' is set to 10.9, but the range of supported deployment target versions is 10.13 to 13.3.99).