I have the same issue. launchd_sim could not bind to session on iOS 18.6 / 26.1 / 26.2 but when I downloaded 18.2 it worked fine. I tried clearing ~/Library/Developer/Xcode/DerivedData and /Library/Caches/com.apple.dt.Xcode but no success. I tried removing project build caches from System Settings -> Storage -> Storage Settings -> Developer, but no success. I deleted iOS Simulator 26.1 platform from Xcode > Settings > Components and then re-adding it but still no success.