Did you find any workaround or got any reply from Apple? We are having the same issue and it seems the issue still exists not only on the latest iOS versions (16.1-16.2) but also on 14th gen iphones (at least we reproduced it on iphone 14 pro and iphone 14 pro max)

I have the same issue even on the latest Xcode and I'm just freelance dev working in coworking places or hotels. I have to keep turning off wifi (which is annoying and not a solution) on my phone to force using USB. On top of that I have to turn off my mullvad VPN on macbook so that xcode can then connect via USB. This whole thing drives me nuts and completely kills any enjoyment of coding in Xcode. Wish Apple listen to their dev community and just roll back previous way even for time being until their figure out what's wrong. Still I prefer to having control of forcing USB - this is the most reliable and fastest way especially if someone working on hotel wifi. WIFI should be only used as fallback if device is not connected by wire. Together with other issues in Xcode I have (debugger broken and I constantly I have to clean project to make it work) wastes too much of developer time...

Does anyone know if this got actually implemented on iOS 18? I'm so surprised but this behavior (at least document it somewhere about this limitation) as well and most likely shelf the idea or support only other platforms