We are having the same issue! No one in the team can install beta version now.

Have you found a solution? I just came across exactly the same issue! It looks like a bug of SwiftUI as it's just a lazyHGrid in ScrollView!

I finally got this fixed and build was accepted by TestFlight. Turned out it's the VALID_ARCHS settings. If I remember correctly it was carried over from Xcode 11 to 12, that the VALID_ARCHS in Build Settings ended up under User_Defined. All I needed to do was to change this setting to $(ARCHS_STANDARD) in both WatchApp and Watch Extension. Before the change I couldn't even build it onto Watch Simulator, showing the error in Xcode console: WatchKit 1 apps aren't supported on this version of watchOS. Quitting "(null)". This was fixed as well.

@DominikPich have you found a solution? We are facing the same issue with Xcode 14.0 (14A309). This is a pretty old project and watch App has been there for years. No problem with Xcode 13.