Thank you for your reply. I am currently adding a bug report using the feedback assistant.
Regarding using the command:
xcrun simctl runtime add ~/Downloads/visionOS_1_beta_Simulator_Runtime.dmg
for manual installation, I had tried this in the past, and have done so once again. Here is the output from the terminal:
objc[43855]: Class DTXDecompressionException is implemented in both /System/Library/PrivateFrameworks/DTXConnectionServices.framework/Versions/A/DTXConnectionServices (0x1f678c8e0) and /Applications/Xcode-beta.app/Contents/SharedFrameworks/DTXConnectionServices.framework/Versions/A/DTXConnectionServices (0x1028a3630). One of the two will be used. Which one is undefined.
# Repetitive messages, included in attachment
[xcrun installation output](https://developer.apple.com/forums/content/attachment/0f9343a6-4e12-407b-80aa-a9f589ec32d8)
objc[43860]: Class DTXFileDescriptorTransport is implemented in both /System/Library/PrivateFrameworks/DTXConnectionServices.framework/Versions/A/DTXConnectionServices (0x1f678ce58) and /Applications/Xcode-beta.app/Contents/SharedFrameworks/DTXConnectionServices.framework/Versions/A/DTXConnectionServices (0x1042c3ba8). One of the two will be used. Which one is undefined.
D: D2C44899-A79B-447A-940C-92DA89EDC744 xrOS (1.0 - 21N5165g) (Unusable - Other Failure: Error Domain=SimDiskImageErrorDomain Code=5 "Duplicate of 6F63ACE5-CDD0-41B4-A910-D0A9BA8A72A2" UserInfo={NSLocalizedDescription=Duplicate of 6F63ACE5-CDD0-41B4-A910-D0A9BA8A72A2, unusableErrorDetail=})
And the result in Xcode Settings: