You are doing nothing wrong, but have probably hit a bug in Xcode dating back to Xcode 10.1 beta:
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As of Xcode 10 beta 1, it seems the build settings editor GUI doesn't properly resolve the correct value for variables defined in the xcconfig files, and displays the values as if resolved with the old pre-Xcode 10 behavior.
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Basically the settings really are being inherited correctly, but Xcode itself doesn't display them as if they are. This had me stumped today until I came across the above on stackoverflow /1393987/how-to-append-values-in-xcconfig-variables.
To be sure, actually do a #if DEBUG .... #endif section in your code and see if the enclosed code gets called at runtime.
It sure would be nice if this were fixed!
Topic:
Developer Tools & Services
SubTopic:
Xcode
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