Provisioning profile missing com.apple.developer.background-modes entitlement, even with Background Modes enabled in Xcode

Hello,

I’m having trouble enabling Background Location updates on my iOS app.

• Xcode: 26.0 beta
• Team: Individual Developer Program (paid, activated recently)
• Device: iPhone (physical device, registered and provisioned)

Problem

When building to device, I get the error:

Provisioning profile "iOS Team Provisioning Profile: com.mybundle.id" doesn't include the com.apple.developer.background-modes entitlement.
Automatic signing failed.

On the simulator the build succeeds, but on device the signing fails unless I remove the background-modes entitlement from .entitlements.

What I tried

• Enabled Background Modes → Location updates in Signing & Capabilities (UI only).
• Info.plist contains UIBackgroundModes = location and the required NSLocation…UsageDescription keys.
• Cleaned Derived Data, removed cached provisioning profiles (~/Library/Developer/Xcode/UserData/Provisioning Profiles).
• Changed Bundle Identifier to force regeneration of provisioning profiles.
• Deleted and recreated provisioning profiles from Xcode.
• Tried both with and without manual .entitlements edits.

Current status

• Provisioning profile shows only App Groups, In-App Purchase, Push Notifications.
• Entitlements section in the downloaded profile is missing com.apple.developer.background-modes.
• As a result, background location cannot be enabled on device.

Question

Is this a known issue with Xcode 16/26 beta or with Individual Developer accounts? How can I get com.apple.developer.background-modes included in my provisioning profile so that location tracking continues while the screen is locked?

Thank you.