Exact same situation for me, using Parallels on M1 Mac mini host. Xcode sits perpetually spinning blue circles "Launching World", "Installing World", "Attaching to World on Apple Vision Pro". Same with a trivial default New Project for VisionOS. Trivial default project for iPhone both Preview and Runs, although curiously the Globe and Hello World appear only in Preview, not on the iPhone simulator itself (blank white screen there)