I had a similar problem after the update to iOS 17, it was more about the fact that suddenly it made a difference, whether I was launching my application with the Debug or the Release stage. The Debug stage launching stopped prompting the user for local network permission, the Release stage was still working. After experimenting with the build settings of my XCode for hours and trying to find out the difference between the configurations, I finally managed to get it corrected: by setting the "Swift compiler - Code generation" of the Debug stage to "Optimize for speed [-O]". It is not the best solution, though, because this setting value is recommended for production, but since I need the debug stage for testing, I had to take it.

Experiencing the same problem. Is there any solution yet?