The problem was indeed the EnableSwiftBuildSystemIntegration.
Setting it to 0 was not working, though. I got a response from an engineer through feedback assistant.
Completely removing the key fixed this issue.
This worked for me:
defaults delete com.apple.dt.XCBuild EnableSwiftBuildSystemIntegration
restart Xcode
we7ee
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I had the same issue like @darrylfromredwoodcity described.
My problem was that I hat installed multiple versions of Xcode and the wrong Command Line Tools were selected.
Changing the CLT fixed it for me:
Xcode > Preferences > Location > Command Line Tools -> Select correct version