Yes, it is correct. Here is the email I received:
Hello,
Your request to use Endpoint Security was approved.
You will need to enable two capabilities for your Bundle ID. Click Identifiers
in the sidebar, then select the Mac App ID that you will use for Endpoint
Security. Under Capabilities, enable System Extension. Under Additional
Capabilities, enable Endpoint Security. Click Save in the top-right of the
page, review the alert that appears, and confirm if you accept the changes.
Then generate a new provisioning profile for your App ID by clicking Profiles
in the sidebar and the Add button (+) in the upper-left corner.
Once your profile has been created, you'll need to configure your Xcode project
for manual code signing. If your Xcode project doesn't already have an
entitlements file, create a new property list file and change its extension
from .plist to .entitlements. Add the keys and values of the entitlements used
in your project to the .entitlements file, then follow the rest of the Xcode manual
signing process.
For troubleshooting, see
Technote 2415 Entitlements Troubleshooting and Debugging
Entitlement Issues. If you need additional support, visit the Apple
Developer Forums or
submit a Technical
Support Incident.
Best regards,
Apple Developer Relations
I am using the correct developer ID signing certificate for both the app and the extension:
Having gone through this process three times now, with the same results, and I'm sure something is missing in the documentation. Obviously, someone has been able to run this prior to my attempts.