Distribute XCFramework that has dependencies on Swift Packages with Example project

I've created a closed source iOS SDK from a local Swift package, which has dependencies on other Swift packages, and successfully created a binary XCFramework following the solution from my previous post.

Now I'm proceeding with the process to distribute this SDK. I believe I want to upload the XCFramework to a public repo alongside a Package.swift file and an Example app project that uses the XCFramework. So each time I go to create a new release I’ll create a new XCFramework replacing the current one, verify it's working properly in the example app, then commit, tag, and push to the repo.

My question is how do I set this up as a Swift package that includes an example app that uses the local XCFramework (not a remote url to a zip of the framework) and properly resolves dependencies?

So far I created a directory containing MyFramework.xcframework and Package.swift containing:

// swift-tools-version: 5.10
// The swift-tools-version declares the minimum version of Swift required to build this package.

import PackageDescription

let package = Package(
    name: "MyFramework",
    platforms: [
        .iOS(.v14)
    ],
    products: [
        .library(
            name: "MyFramework",
            targets: ["MyFramework"]
        )
    ],
    dependencies: [
        .package(url: "https://github.com/example/example.git", from: "1.0.0")
    ],
    targets: [
        .binaryTarget(
            name: "MyFramework",
            path: "MyFramework.xcframework"
        )
    ]
)

I then created an Example iOS app project in that directory and now need to integrate the local XCFramework. I wondered if I could do that via File > Add Package Dependencies > Add Local, but when I navigate to that Package.swift and click Add Package it says

The selected package cannot be a direct ancestor of the project.

Do I need a different Package.swift for the Example app, and if so, how do I get that set up? I created a separate Package.swift (contents below) alongside the xcodeproj but when I try to add that in Xcode I get the same error, despite the fact this package is a sibling of the project not an ancestor.

// swift-tools-version: 5.10
// The swift-tools-version declares the minimum version of Swift required to build this package.

import PackageDescription

let package = Package(
    name: "MyFramework-Example",
    platforms: [
        .iOS(.v14)
    ],
    dependencies: [
        .package(name: "MyFramework", path: "../")
    ],
    targets: [
        .target(
            name: "MyFramework-Example",
            dependencies: ["MyFramework"]
        )
    ]
)