As far as I can tell, the option in question simply allows developers to test the iPad arm64 app natively on their M1 Mac. In fact, if you hover your cursor over that option in Xcode, you'll see a note: "Only available on Macs with Apple silicon". Straight from the Mac Catalyst documentation - https://developer.apple.com/documentation/uikit/mac_catalyst/uikit_catalog_creating_and_customizing_views_and_controls: The option Show Designed for iPad Run Destination allows [your xcode project], as an iPad app, to run “as-is” on Apple silicon Macs. This requires macOS 11 and a Mac with Apple silicon. It's worth noting that this option doesn't seem to have any to do with your app's availability to end users. By default, iOS apps are available to anyone running a Mac with Apple Silicon unless you opt-out your project in App Store Connect (see documentation) - https://developer.apple.com/documentation/apple_silicon/running_your_ios_apps_on_macos: After you sign the updated developer agreement, the App Store automatically makes compatible iOS apps available to users of a Mac with Apple silicon. However, if you’re already planning to ship a macOS version of your app, or if your app doesn’t make sense on the Mac, you can change your app’s availability in App Store Connect. All that said, I don't have an M1 Mac to test, and so I haven't tested this feature for myself. I welcome anyone to provide more insights.

In another thread on this topic, a user mentioned that they had success by submitting a new version and appealing it. I'm trying that right now and will report back. https://developer.apple.com/forums/thread/678920?page=2

Yes, I was able to overcome this by appealing the rejection with the App Review Board. They approved my binary, which broke the cycle of denial and allowed me to set the App Privacy settings appropriately prior to my next binary submission. I’ve filed a feedback documenting the issue and uploaded the details of that feedback here http://openradar.appspot.com/radar?id=5009431033020416

Just wanted to share my experience: Tried generating a promo code, didn't work. Tried generating again immediately after, still didn't work. Tried a third time—worked. So I guess the moral of the story is... just keep trying. App Store Connect surprises me in new ways every day.

The following Terminal command worked for me: rm /var/folders/*/*/*/com.apple.dock.iconcache rm -r /var/folders/*/*/*/com.apple.iconservices* killall Dock