Same here. Started just this afternoon, around 1300 PDT.
It's WAY worse than just predictive code completion in Xcode 26 though. Apple Intelligence has completely collapsed across ALL of my devices: Mac, iPhone, iPad. On iPadOS 26 and iOS 18.6. Across all apps/tools that use Apple Intelligence. Image Playground doesn't work, writing tools don't work, even Siri has fallen back to the old orb UI instead of the glowing ring.
It spread like a virus: I got the message that Xcode couldn't load its prediction model. Then, the iPad app I was working on suddenly started failing to load Foundation.Models. Now, Every device is stuck at "Downloading models" in Settings > Apple Intelligence & Siri. The Mac reports 100% complete there. Other devices just say "downloading."
Attempts To Fix
There are threads talking about switching languages from U.S. English and restarting. None of that works.
There are threads describing how to manually delete the generative model downloads by booting into recovery mode, disabling SIP, and using Terminal. Did that on my Mac. The files re-downloaded, but Apple Intelligence is still borked.
Conclusion
Someone in Cupertino pushed something or changed something server-side that has completely borked Apple Intelligence on 19 June 2025 for anyone running the betas. My wife's devices do not appear to be affected, but all of those have the latest release versions of iOS/macOS.
There is a large thread with reports here: https://www.reddit.com/r/iOSBeta/comments/1lf99ux/ios_26_db1_apple_intelligence_uninstalled/
And many posts on X about the issue. Something broke today.