I found the solution in the following post: https://developer.apple.com/forums/thread/744385
To do that, go to your build settings and under Architectures, set Base SDK to 'visionOS'. Then you will see the Destination 'Any visionOS Device (arm64)' in Xcode.
After changing the build setting, the binary shows up in App Store Connect as expected.
Topic:
App Store Distribution & Marketing
SubTopic:
App Store Connect
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