I have similar experience while using iOS 14.6 and Xcode 12.5 on MacBook M1. Do you know if this was fixed on iOS 14.7?

@wezoo when there will not be this "Reduced Security" required on Apple Silicon? When I set this I cannot use Apple Pay on my Mac any more ... seriously this makes my dev and daily user usage hard enough ... ;/

I have the same issue, have you resolved it somehow?