Can also confirm that this is not an issue on Xcode 12.5.1 and iOS 14.1 and iOS 14.4 (didn't test interim versions), but is an issue on iOS 14.5
tommeier
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Can confirm, issue on xcode 12.5.1, ios 14.5 + big sur 11.5.1. Intel mac minis on same setup have no issue, all m1s unable to save image in simulators (or react at all to picked images).