Building an iOS project for Simulator fails in Xcode

Steps to reproduce:

1. Create a new Unity project
2. Switch target to iOS
3. Change Target SDK to Simulator SDK (in Player Settings/Other)
4. Build the project
5. Open the generated Xcode project and try to build it to a Simulator

Expected behaviour: Xcode project is built and opened on the Xcode Simulator.
Actual behaviour: building the Xcode project fails.

Reproduced with: 2022.2.0b1, 2023.1.0a4
Not reproducible with: 2021.3.6f1

Reproduced using both Xcode 13.x & Xcode 14 beta.