I'm experiencing a similar issue when I plug my iPhone with iOS 17 into my MacBook Pro and build a run.
My app hangs on the launch screen for a long time (~10 seconds) then once the app UI shows up, it's unresponsive to touches for about 20 seconds.
If I turn wifi off on my iPhone while it's plugged in, it works as I expect it to work: fast build and run, quick launch screen, and instantly responsive once past the launch screen.
However, turning off wifi is not ideal, because if I don't have good cell service it's hard to test my app (which requires internet). Ideally I'd like to be able to build and run at plugged-in speeds when my iPhone is plugged into my computer, even when I have wifi turned on on the iPhone.
I have a test iPhone with iOS 16, and I have connect via network enabled for that device. That devices works as expected: when I have it connected via a cable, it builds and runs quickly, and is instantly responsive to touches when the app starts, like I'd expect. Even when I don't have a cable connected, it takes a little longer to install, but then it starts right up with quick launch screen, and responds to touches immediately, unlike on my iOS 17 device.
I don't have a VPN installed on my iOS 17 device or my MacBook Pro.
It would be great to be able to build and run at a normal speed on iOS 17 devices with wifi enabled again. Hopefully someone on the Xcode team will fix this issue soon! 🤞😢