Hello @haptic! As @Daniel1codes mentioned in his reply to your last message, the best and easiest solution, is to carry out a full delete of Xcode, followed by a re-install from the App Store.
I ran into this issue when I updated to Xcode 26, so I carried out a full delete of Xcode and reinstalled from App Store. This fixed the DDI issue.
Terminal commands used to fully delete Xcode:
sudo rm -rf /Applications/Xcode.app
rm -rf ~/Library/Developer/Xcode
rm -rf ~/Library/Caches/com.apple.dt.Xcode
rm -rf ~/Library/Developer/CoreSimulator
rm -rf ~/Library/MobileDevice
sudo rm -rf /Library/Developer/CommandLineTools
sudo rm -rf /Library/Developer
sudo rm -rf /System/Volumes/Data/Library/Developer
rm -rf ~/Library/Preferences/com.apple.dt.Xcode.plist
rm -rf ~/Library/Application\ Support/Xcode
NOTE: If you are getting 'Operation Not Permitted' when running sudo rm -rf /Library/Developer or sudo rm -rf /System/Volumes/Data/Library/Developer manually delete them in Finder.
Topic:
Developer Tools & Services
SubTopic:
Xcode