Project Navigator file SCM status has been wonky from the first beta release of Xcode 26, and continues to be with version 26.2. It matches actual Git state perhaps 50% of the time, and needs a complete restart of Xcode to refresh. Someone needs to attend a refresher State Machines 101 course. It seems likely this situation affects all Git interactions in Xcode 26. Best option is using external client, cli or GUI.

This appears to be a pervasive OS-level issue, likely related to the new, and unnecessary, iconography that Tahoe introduces throughout application menus. It does not affect menu functionality, but it does interfere significantly with readability. That Apple seems unaware of the problem is unfortunately not surprising. macOS 26 has introduced a broad set of regressions, and this is far from the most severe. Many developers have become discouraged from filing reports after repeatedly receiving the familiar “No other reports” response in Feedback Assistant, which in practice suppresses useful reporting rather than encouraging it. The most serious practical impact here is that this visual noise can completely obscure meaningful output in the Xcode debug console, making it difficult to spot real warnings, errors, or diagnostics when they matter. That an Apple engineer should reply to such a problem dismissively reinforces this perception. “Bad Dye Job” is likely the underlying cause.

Xcode 15.4 beta 1 and WatchOS 10.5 betas do not fix.

Not resolved on this machine with watchOS 10.4, iOS 17.4.1, Xcode 15.3, macOS 14.4. Watch was originally in run destinations list but removed, along with three iOS devices (including the paired iPhone), while attempting to resolve connection issues with all. iOS connection issues resolved by temporarily disabling VPN - see TN3158. Watch no longer appears as candidate in run destinations management window (after manually removing in preparation to re-add). Next beta releases of Xcode and OSs are uncharacteristically slow appearing - presume Apple is scrambling to fix what is not a small problem. @eskimo has several threads communicating problem, but no mention of the Watch connection issue - suspect it is related but its own issue. TestFlight appears the best workaround until this is resolved.

Multiple versions of Xcode can coexist. Xcode 14.3.1 probably runs fine under Sonoma - have you tried? You will need to set the active version of Xcode using xcode-select -s /path/to/active/Xcode/Contents/Developer https://github.com/XcodesOrg/xcodes is a handy tool to download and unpack Xcode versions more quickly, and provides a GUI to activate the desired version.