This seems to maybe be an iOS 14.5 (beta) issue? I'm only seeing this behavior on 14.5.

I've narrowed it down to simulator only, using Xcode 12.5 beta 2 (12E5234g) with a simulator running iOS 14.5 (18E5154g). On my device, which is running 14.5 (18E5154f), it seems to work. Thanks, Paul

Thanks. I have submitted the bug: FB9015809 Paul

Xcode 12.5 beta 3 (12E5244e), iOS 14.5 beta 3 Issue still exists.

I second this notion. Not being able to use my iCloud account for testing and development on a beta OS makes the VM not usable for me. But, I do congratulate the team on how easy it all was to set up!