Failed to resolve dependencies: incompatible tools version

I'm using Xcode 12.4 on Catalina (for testing purposes). My app uses some SPM packages (eg Blessed) which specify // swift-tools-version:5.5.

Am I correct believing Xcode 12.4 can be made to compile these packages by downloading and installing a later Swift? This is what I've tried:

  • downloaded and installed Swift 5.6.1 from https://www.swift.org/download/
  • selected the new Swift in Xcode > Toolchains > Swift 5.6.1
  • confirmed it in Xcode's preferences > Components > Toolchains
  • attempted to resolve my package versions: Xcode File menu > Swift Packages > Resolve Package Versions

Unfortunately this results in an error:

"Failed to resolve dependencies"

"because every version of Blessed contains incompatible tools version and root depends on Blessed 0.3.0..<1.0.0, version solving failed."

I'm left wondering, is "Toolchain" something different than "Tools"? My Xcode's "Command Line Tools" is still "Xcode 12.4" (the only option).