I'm gonna try and report the result in both places. For "creating a guest" you mean the guest account in macos? I already signed in in the normal admin account created by Veetu Arka VM, as I was attempting to download Xcode from the Store – but it didn't actually work ("Unknown error") so I had to validate my credentials were right and so on. What I didn't try was to login into Xcode. I'm not exactly sure such credentials are used when Iaunching xcodebuild tho?

Sorry, I misread the comment. By "creating a guest" you meant the VM itself. Already did that. I logged inside Xcode and run. Same result. I get only a log (as reported in Github - not sure is relevant): load_eligibility_plist: Failed to open /Users/anka/Library/Developer/CoreSimulator/Devices/3C98C17C-E4D8-4D93-8FEF-1502E946841C/data/Containers/Data/Application/9768D993-598C-49AA-8792-64C9FC306246/private/var/db/eligibilityd/eligibility.plist: No such file or directory(2)