Just tried it on Xcode 15.1 Beta 3 (15C5059c) and iOS 17.1.1 (21B91), can confirm this is still an issue.
Let's strap in and be prepared to deal with this for quite a long time. Meanwhile, I want to offer a workaround that works for me 100% of the time, although judging by what we have been seeing in this thread, no workaround posted so far works for 100% of the people 100% of the time.
Background of my workaround:
I noticed that when Xcode 15 and iOS 17 work together, they are pretty persistent in using the network as the debug method; as @eskimo said, the cable should be considered a virtual network, but in practice, Xcode 15 always prioritize my Wi-Fi
The persistency is so prevalent, to the point that even when I turn off all networks on my iOS device, Xcode still tries to hunt the iOS device down over Wi-Fi
Continuing from point 2, I found the only way to guide the stubborn Xcode to reconsider how it should connect to iOS is to quit Xcode and start it from scratch
Steps to workaround:
Start your regular debug session with a cable plugged in. Hopefully, a new version of Xcode already works for you without issue
If it doesn't work, take your iOS device off the network and start debugging again. This can be turning off Wi-Fi, entering airplane mode, etc.
When step 2 fails, quit Xcode completely, restart Xcode, and start debugging. We are leveraging Xcode's stubbornness to our advantage in this step; it should be trying a cable connection relentlessly now
If your device has a backup network, such as cellular, it should be working now, and you can feel free to turn your network back on. If your device does not have a backup network, it will display an error message saying you need to connect to the internet to authorize the App, move to the next step
If your device does not have a backup network, e.g. a Wi-Fi-only iPad, make sure you see an error message complaining about network authentication when trying previous steps; once you see the error message, you will know for sure that Xcode is trying to debug over the cable. You can safely turn the Wi-Fi back on and continue your debug session.
More data points for Apple debugging this issue:
In my setup, I connect my MacBook to a HP TB Dock G2 (https://support.hp.com/us-en/product/details/hp-thunderbolt-dock-g2-with-combo-cable/21816261), my iOS devices does not connect to my mac directly, they connect to it via the dock.