Unable to Install app when adding target extension to support WidgetKit

Describe the bug

So I wanted to add Widgets to my app, and did so using widgetKit extension. Everything worked fine. But now I wanted to add support for this in my Project.yml, so I modified my Project.yml and added the code. Everything goes fine, until the installation part.

Here's a part of my Project.yml to reproduce the issue.

targets:
    DemoApp:
       #some code
        dependencies:
            - target: DemoWIdgetsExtension
        #some code
    
  
    DemoWIdgetsExtension:
        type: app-extension
        subtype: widgetkit-extension
        platform: iOS
        deploymentTarget: 14.0
        settings:
            base:
                INFOPLIST_FILE: DemoWIdgets/Info.plist
                DEVELOPMENT_TEAM: xxxxxxxx
                SKIP_INSTALL: true
                PRODUCT_NAME: $(TARGET_NAME)
                ASSETCATALOG_COMPILER_GLOBAL_ACCENT_COLOR_NAME: AccentColor
                ASSETCATALOG_COMPILER_WIDGET_BACKGROUND_COLOR_NAME: WidgetBackground
                CODE_SIGN_STYLE: Automatic
                CODE_SIGN_ENTITLEMENTS: AppWidget/AppWidget.entitlements
        sources:
            - DemoWIdgets
        dependencies:
            - sdk: SwiftUI.framework
            - sdk: WidgetKit.framework

Unable to install "DemoApp"
Domain: com.apple.dt.MobileDeviceErrorDomain
Code: -402653081
Recovery Suggestion: Please check your project settings and ensure that a valid product has been built.
User Info: {
    DVTErrorCreationDateKey = "2023-02-10 16:30:34 +0000";
    IDERunOperationFailingWorker = IDEInstalliPhoneLauncher;
}
--
There was an internal API error.
Domain: com.apple.dt.MobileDeviceErrorDomain
Code: -402653081
User Info: {
    DVTRadarComponentKey = 261622;
    MobileDeviceErrorCode = "(0xE8000067)";
    "com.apple.dtdevicekit.stacktrace" = (
	0   DTDeviceKitBase                     0x0000000126772c90 DTDKCreateNSErrorFromAMDErrorCode + 235
	1   DTDeviceKitBase                     0x00000001267af2ee __90-[DTDKMobileDeviceToken installApplicationBundleAtPath:withOptions:andError:withCallback:]_block_invoke + 155
	2   DVTFoundation                       0x000000010d758e01 DVTInvokeWithStrongOwnership + 71
	3   DTDeviceKitBase                     0x00000001267af016 -[DTDKMobileDeviceToken installApplicationBundleAtPath:withOptions:andError:withCallback:] + 1409
	4   IDEiOSSupportCore                   0x00000001264f07a0 __118-[DVTiOSDevice(DVTiPhoneApplicationInstallation) processAppInstallSet:appUninstallSet:installOptions:completionBlock:]_block_invoke.301 + 3520
	5   DVTFoundation                       0x000000010d88ea09 __DVT_CALLING_CLIENT_BLOCK__ + 7
	6   DVTFoundation                       0x000000010d88f51d __DVTDispatchAsync_block_invoke + 196
	7   libdispatch.dylib                   0x00007ff80da290cc _dispatch_call_block_and_release + 12
	8   libdispatch.dylib                   0x00007ff80da2a317 _dispatch_client_callout + 8
	9   libdispatch.dylib                   0x00007ff80da30317 _dispatch_lane_serial_drain + 672
	10  libdispatch.dylib                   0x00007ff80da30dfd _dispatch_lane_invoke + 366
	11  libdispatch.dylib                   0x00007ff80da3aeee _dispatch_workloop_worker_thread + 753
	12  libsystem_pthread.dylib             0x00007ff80dbddfd0 _pthread_wqthread + 326
	13  libsystem_pthread.dylib             0x00007ff80dbdcf57 start_wqthread + 15
);
}
--

Analytics Event: com.apple.dt.IDERunOperationWorkerFinished : {
    "device_model" = "iPhone13,2";
    "device_osBuild" = "16.3 (20D47)";
    "device_platform" = "com.apple.platform.iphoneos";
    "launchSession_schemeCommand" = Run;
    "launchSession_state" = 1;
    "launchSession_targetArch" = arm64;
    "operation_duration_ms" = 30367;
    "operation_errorCode" = "-402653081";
    "operation_errorDomain" = "com.apple.dt.MobileDeviceErrorDomain";
    "operation_errorWorker" = IDEInstalliPhoneLauncher;
    "operation_name" = IDEiPhoneRunOperationWorkerGroup;
    "param_consoleMode" = 0;
    "param_debugger_attachToExtensions" = 0;
    "param_debugger_attachToXPC" = 1;
    "param_debugger_type" = 5;
    "param_destination_isProxy" = 0;
    "param_destination_platform" = "com.apple.platform.iphoneos";
    "param_diag_MainThreadChecker_stopOnIssue" = 0;
    "param_diag_MallocStackLogging_enableDuringAttach" = 0;
    "param_diag_MallocStackLogging_enableForXPC" = 1;
    "param_diag_allowLocationSimulation" = 1;
    "param_diag_checker_tpc_enable" = 1;
    "param_diag_gpu_frameCapture_enable" = 0;
    "param_diag_gpu_shaderValidation_enable" = 0;
    "param_diag_gpu_validation_enable" = 0;
    "param_diag_memoryGraphOnResourceException" = 0;
    "param_diag_queueDebugging_enable" = 1;
    "param_diag_runtimeProfile_generate" = 0;
    "param_diag_sanitizer_asan_enable" = 0;
    "param_diag_sanitizer_tsan_enable" = 0;
    "param_diag_sanitizer_tsan_stopOnIssue" = 0;
    "param_diag_sanitizer_ubsan_stopOnIssue" = 0;
    "param_diag_showNonLocalizedStrings" = 0;
    "param_diag_viewDebugging_enabled" = 1;
    "param_diag_viewDebugging_insertDylibOnLaunch" = 1;
    "param_install_style" = 0;
    "param_launcher_UID" = 2;
    "param_launcher_allowDeviceSensorReplayData" = 0;
    "param_launcher_kind" = 0;
    "param_launcher_style" = 0;
    "param_launcher_substyle" = 0;
    "param_runnable_appExtensionHostRunMode" = 0;
    "param_runnable_productType" = "com.apple.product-type.application";
    "param_runnable_type" = 2;
    "param_testing_launchedForTesting" = 0;
    "param_testing_suppressSimulatorApp" = 0;
    "param_testing_usingCLI" = 0;
    "sdk_canonicalName" = "iphoneos16.2";
    "sdk_osVersion" = "16.2";
    "sdk_variant" = iphoneos;
}
--

System Information

macOS Version 12.6.1 (Build 21G217)
Xcode 14.2 (21534) (Build 14C18)
Timestamp: 2023-02-10T22:00:34+05:30

Reproduction steps

• change the Project.yml to this config
• Run xcodegen generate
• Build and Run Project
• Issue Pops up

Start with the Project.yml configuration and the generated Xcode project after running xcodegen generate; reproduce the installation failure by building and running the DemoApp with the WidgetKit extension target. Inspect the generated target, dependency, and installation settings, and consider the issue done when the app installs successfully on the stated iOS setup.