It is not fixed on macOS 26.4 beta or Xcode 26.4 beta.
I believe I have found a workaround however:
Set this value in Terminal and then restart Xcode and run Update to latest package versions.
defaults write com.apple.dt.Xcode IDEPackageSupportUseBuiltinSCM 1
I have verified this works for me with Xcode 26.3 and 26.4 on macOS 26.4 beta after previously having the issue above.
Topic:
Developer Tools & Services
SubTopic:
Xcode
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