As a follow-up, the behavior exists under 1.2 beta 2 as well.

Funnily enough, I posted about the same issue on Reddit: https://www.reddit.com/r/visionosdev/comments/1c1pr8f/visionos_hello_world_sample_code/ As it doesn't happen on the 1.0 simulator, I wonder if it's caused by a bug/change in 1.1.x. I haven't installed the 1.2 beta yet.

No it isn't. Wired latency is about 0.3ms vs 3-4ms for wireless. Packet loss is very common over wifi, and nearly non-existent over a 1m USB cable.

There's not much to do other than plug it in. A new wired network interface will be created and used by Xcode for pushing builds and debugging. The utility is that the connection is more reliable and far less latent than over wifi. en22: flags=8863<UP,BROADCAST,SMART,RUNNING,SIMPLEX,MULTICAST> mtu 1500 options=404<VLAN_MTU,CHANNEL_IO> inet6 fe80::18f7:e85a:58e0:5a83%en22 prefixlen 64 secured scopeid 0x31 nd6 options=201<PERFORMNUD,DAD> media: autoselect (100baseTX )