The release notes - https://developer.apple.com/documentation/xcode-release-notes/xcode-12_5-beta-release-notes list this as a Known Issue under Simulator
You can’t log into iCloud on a simulated device running iOS 14.5, iPadOS 14.5, tvOS 14.5, or watchOS 7.4. (74295005)
Actually, not exactly the same as OP, but related, and also how I stumbled on the issue. Please file a Feedback. One of my recent ones was in the Resolved section.
I can now confirm that loading iOS 14.4 simulator runtime with 12.5 Beta 2 does have network connection.
Topic:
Developer Tools & Services
SubTopic:
Xcode
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