Fixed this. In my main "App" target from the template, it defaults to - productType = "com.apple.producttype.application.messages"; in the project.pbxproj file. It needed to be - productType = "com.apple.product-type.application";

Ok thank you. So do I need to embed my iMessage extension inside the imessage app container? And I don't have to have the in app purchase capability to make in app purchases work?