Same issue here. On macOS 12 I can not change the language or region setting of a iOS 16.1 simulator. But on macOS 13 it works as expected. I would appreciate a solution a lot because one Mac I can not update to macOS 13 but the machine is still needed. Thank you.

Seems to be solved in Xcode 14.2 with iOS 16.2. Anyone else who can confirm the fixed issue?