iOS Simulator Fails to Launch .app file

I'm creating a build to use in UI automation with the following xcodebuild command:

xcodebuild -scheme Test-QA \
        -project $GITHUB_WORKSPACE/iosApp/Test.xcodeproj \
        -sdk iphonesimulator \
        -configuration ‘Debug QA’ \
        -destination 'platform=iOS Simulator,name=iPhone 15,OS=latest' \
        -derivedDataPath “/Users/test/build” \
        clean build

Installed the app using 'xcrun simctl install booted /path/appfile.app'

Works fine on the original runners simulator and some other machines. However, when I try to run the .app file on the testing machine's simulator, it returns the following error:

xcrun simctl launch booted com.test.app.qa
An error was encountered processing the command (domain=FBSOpenApplicationServiceErrorDomain, code=1):
Simulator device failed to launch com.test.app.qa.
The request was denied by service delegate (SBMainWorkspace).
Underlying error (domain=FBSOpenApplicationServiceErrorDomain, code=1):
	The request to open "com.test.app.qa" failed.
	The request was denied by service delegate (SBMainWorkspace).

Console log :

Bootstrapping failed for <FBApplicationProcess: 0x103f9ca40; app<com.test.app.qa((null))>:<invalid>> with error: <NSError: 0x600000d22010; domain: RBSRequestErrorDomain; code: 5; "Launch failed."> {
    NSUnderlyingError = <NSError: 0x600000d20600; domain: NSPOSIXErrorDomain; code: 1> {
        NSLocalizedDescription = Launchd job spawn failed;
    };
}

Additional Details: Both machines are running the same version of Xcode 15.4 and arm64. The simulator was reset to ensure a clean state. The same error persists even after rebooting the machines. Ensured that the bundle identifier is correct. Both devices have Rosetta installed.

What could be causing this error?