Try manually deleting the app from your watch and companion iOS app on your phone as well if you have one. If you continue to get this error then collect a sysdiagnose for the watch and Mac to add to your Feedback report.

@duragdaddy Do you have a pointer to the page with that text? I don't see it in the downloads page https://developer.apple.com/download/all/?q=Xcode so maybe it was updated already.

See the Intel Deprecation section of the Release Notes: Xcode 27 will only install and run on Apple silicon Macs. The macOS SDK is still Universal for back deployment up to and including macOS 27. Intel development is still possible with macOS versions that support Rosetta like macOS 27. (162138432)