Apple failed my beta build I submitted for TestFlight for non-compatibility with iPad but I'm an iPhone app! How can I designate that the app as specifially iPhone only?
This doesn't work (at least for TestFlight review). The iPhone build setting is happily ignored by the review team. Actually, it's worse than this. If you submit an iPhone-only app, then iOS won't try to scale your views properly because it knows its iPhone only. This doens't, however, prevent someone from running the app in the iPad simulator. Which the reviewers do because section 2.10 of the Review Guidelines says they have to.
The "obvious" answer to tell the Reviewer about it being iPhone only is also happily ignored – known from experience – and also per section 2.10. So, you may need to make your app universal in Build Settings and, at minimum, have it launch in the iPad simulator with some reasonable degree of esthetic appeal. Now, this does not mean that you cannot appeal a rejection based on iPhone only app. But who's got the time to wait and see if Apple actually responds to appeals? I used to try that, but it took a month to get a response and the response was never very helpful.
The submission process to the App Store seems to be a little different since you can target devices more specifically there. I assume the review team takes that into consideration but I don't know for sure.
This is from experience, not directly provided by Apple.