I found this thread: https://discussions.apple.com/thread/253527558 However there are no comments on it. Also, this isn't a general support issue, it is a developer issue that the Xcode team should be looking into, so directing people to that support line makes no sense. I did find someone in the comments added a radar/feedback for this, I've added one as well: FB9969081 - https://feedbackassistant.apple.com/feedback/9969081

Xcode 14 Beta 4 has the issue resolved - finally. Just upgraded my Mac and Xcode and was pleasantly surprised. Note: I did not install the extra watch or tvOS dev kits, since that is not something I'm doing right now anyway.