Cannot build framework for WatchOS | M1 MacBook Pro

Have a framework, which builds fine on iOS but not on WatchOS.

I get the following error:

error build: Command Ld failed with a nonzero exit code

I've seen answers that ask for adding arm64 to the excluded architecture list in build settings. I'm not sure that will work in my case.

Its hard to say why this error is popping up.