Troubleshooting "Decoding Error" in Xcode 16.2 on MacMini M1 with Sequoia 15.1

I'm working with a MacMini M1 running Sequoia 15.1 OS, and I've configured a Virtual Machine on this device using the Virtualization.Framework to operate with the same OS version.

While I can sign into my account through System Settings without any problems, I encounter difficulties when trying to add my account to Xcode 16.2. Initially, the login appears to succeed, but Xcode quickly presents a "Decoding Error":

There was an issue decoding the response: (HTTP 401, 60 bytes) The data couldn’t be read because it is not in the correct format. As a result, I'm unable to access any account details or team information.

I found a similar issue but I don't think it was resolved, even if it's marked as such: https://developer.apple.com/forums/thread/767673

Is there an existing workaround?

Troubleshooting "Decoding Error" in Xcode 16.2 on MacMini M1 with Sequoia 15.1
 
 
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