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.