I don't know what was the problem but I figured out how to solve it. Basically, you need to recreate the target. In my case, I was using the old approach with watchOS app and extension app. Now Xcode 14 offers only a single target - maybe that was the problem. Steps that I used: Copy all files from your watchOS app to another location. Delete folder, target, and schemes, remove all remainings from watchOS app. Add watchOS app target using new Xcode. Add copied files from step. 1 Configure build settings, signing, and assets (whatever you need). Very important: set bundle identifier prefixed by your iOS bundle identifier. Very important: set WKCompanionAppBundleIdentifier in info.plist that equals your iOS app bundle identifier. Super important: go to your main iOS app target, general tab, frameworks, libraries... and click + and add your watchOS app. Now I like to use first watchOS scheme to install watchOS app first, then change scheme and install iOS app. Now you