Thanks for the suggestions! I’ve tried both methods, restarting Xcode and my Mac, and toggling Apple Intelligence off and on. Unfortunately, neither resolved the issue. I’ve submitted a Feedback Assistant report with a sample project and screenshots for further investigation.

Thank you for your response. The sysdiagnose should be linked to the previous feedback!

It works with Xcode 26.2 Beta! And the simulator on iOS 26.2 as well. It was indeed a version issue, because it also works on Xcode 26.1.1 with a Mac run destination. I just hadn’t tested that before. Thank you very much!