I have the exact same problem. Submitted an email to apple still waiting for a response. I think they know as it says "if error persistest conatct us" or something like that.

It’s still not working for me on 15.3 on a legacy app/watch app that has been working and compiling fun until now Tried the sym link and still no app installation even though the code seems to be built. it will it install on either the device or simulator.