Confirming the issue is fixed in XCode 26.4.1. Not sure why Version 26.5 beta 2 (17F5022i) didn't work...

% xcode-select -p /Applications/Xcode-beta.app/Contents/Developer % xcodebuild -version Xcode 26.5 Build version 17F5022i Fresh iPhone 17 Pro Max / iOS 26.5 simulator. Edit > Automatically Sync Pasteboard is checked (tried turning it off/on, no change). How to reproduce: % echo "123" | xcrun simctl pbcopy <udid> % echo "macclip-test" | pbcopy on Mac # Cmd+V inside sim pastes 123, not macclip-test.

I just tried downloading Xcode 26.5 Beta 2. It still doesn't allow to paste clipboard content into a simulator.