Same issue, and App Review hasn't given any clarity if we need to permission gate it or not.

This is a strange one as XCTest is nowhere to be found anywhere in the build settings or schema, and a fresh project installs fine, even with similar dependencies. Plus, from Xcode 26 it will build and install fine on an iOS 18 device and the simulator. So its something with this Xcode project and iOS 26 phones.