It seems this is related to upgrading to macOS Ventura, not to a specific version of Xcode.

The worst thing about the issue is that Apple knows about it but they aren't fixing it in Xcode 14.3. RC 2 came out and the issue is not fixed. So we will have to wait at least for several months it seems, which is unfortunate. I am really tired of relaunching my simulator on every second attempt to run the app. Known Issues Repeated Build & Run targeting iOS 16.1 and later simulator runtimes may sometimes result in a hung launch. (101990080) Workaround: Reboot the simulator device and reattempt the launch.