I solved my issues in imported pods to raise iOS version for each target and pod to min 13.0 and also removed arm64 from excluded architecture. This is important on new M1 macs as you cannot run on simulator if you do not have arm64 architecture in build.

Ok I think I have found a problem inside my project: some of the targets had excluded arm64 architecture so I removed that. Also update any cocoapods you have, we had some before that has set arm64 as excluded architecture, but now there is none that has that setting, so coverage is working.

Same issue on M1 mini, Xcode 12.5 release version. :(

I have similar problem on new mac mini M1, when I tap onto textField and software keyboard should come up, but it doesn't. Funny thing is that same test is working on Intel mac with no problem and I also have disabled hardware keyboard in simulator. To add more funny things, if I erase simulator first of tests will always work, but next one or on repeated run it is a lottery. Should we make bug ticket for Apple? I think this is something wrong on simulator on M1 macs.