Looks Xcode 13.3.1 fixed the issue, I tested it on Xcode Cloud and both the build and deployment actions worked

I had a similar issue where my "Playgrounds" folder on iCloud Drive was corrupted for some reason. Simple solution: Go to Settings > Apple ID (your name on top) > iCloud > iCloud Drive > Apps Syncing to iCloud Drive > Toggle Playgrounds off More complicated solution (if you want it to sync across devices): Delete Swift Playgrounds from all your devices In the Files App, go to iCloud Drive and delete the Playgrounds Folder Reinstall Swift Playgrounds