@Gong thanks for your comment! When I tried to validate archive locally in Xcode it turned out that for some reason even though in Xcode there was no error it looked like I had to change bundle id for my widget extension. After that I've deselected & selected automatic signing for each target and it exported successfully on Xcode cloud, honestly I'm still very confused what was wrong with previous setup as I could export & upload archive on Xcode but not Xcode cloud, but I'll take the win :D