React native – An application bundle was not found at the provided path. Provide a valid path to the desired application bundle

I am facing this error while trying to run WatchOS app on simulator.
An application bundle was not found at the provided path. Provide a valid path to the desired application bundle.

Error Detail is as followed

Simulator device returned an error for the requested operation.
Domain: NSPOSIXErrorDomain
Code: 2
Failure Reason: An application bundle was not found at the provided path.
Recovery Suggestion: Provide a valid path to the desired application bundle.
User Info: {
    DVTErrorCreationDateKey = "2024-01-08 13:24:30 +0000";
    IDERunOperationFailingWorker = "_IDEInstalliPhoneSimulatorWorker";
    SimCallingSelector = "installApplication:withOptions:error:";
    bundleURL = "file:///Users/abdullahshahid_1/Library/Developer/Xcode/DerivedData/SIMOSA-hdnvefmzxxdlwqagsrxeojmlbnje/Build/Products/Debug-watchos/Jazz%20World%20Watch%20App.app";
}
--
Failed to install the requested application
Domain: NSPOSIXErrorDomain
Code: 2
Failure Reason: An application bundle was not found at the provided path.
Recovery Suggestion: Provide a valid path to the desired application bundle.
User Info: {
    bundleURL = "file:///Users/abdullahshahid_1/Library/Developer/Xcode/DerivedData/SIMOSA-hdnvefmzxxdlwqagsrxeojmlbnje/Build/Products/Debug-watchos/Jazz%20World%20Watch%20App.app";
}
--

Event Metadata: com.apple.dt.IDERunOperationWorkerFinished : {
    "device_model" = "Watch7,4";
    "device_osBuild" = "10.2 (21S364)";
    "device_platform" = "com.apple.platform.watchsimulator";
    "dvt_coredevice_version" = "355.7.6";
    "dvt_mobiledevice_version" = "1643.40.14.100.2";
    "launchSession_schemeCommand" = Run;
    "launchSession_state" = 1;
    "launchSession_targetArch" = "x86_64";
    "operation_duration_ms" = 28;
    "operation_errorCode" = 2;
    "operation_errorDomain" = NSPOSIXErrorDomain;
    "operation_errorWorker" = "_IDEInstalliPhoneSimulatorWorker";
    "operation_name" = IDERunOperationWorkerGroup;
    "param_debugger_attachToExtensions" = 0;
    "param_debugger_attachToXPC" = 1;
    "param_debugger_type" = 3;
    "param_destination_isProxy" = 1;
    "param_destination_platform" = "com.apple.platform.watchsimulator";
    "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" = 16384;
    "param_runnable_appExtensionHostRunMode" = 0;
    "param_runnable_productType" = "com.apple.product-type.application";
    "param_structuredConsoleMode" = 1;
    "param_testing_launchedForTesting" = 0;
    "param_testing_suppressSimulatorApp" = 0;
    "param_testing_usingCLI" = 0;
    "sdk_canonicalName" = "iphonesimulator17.2";
    "sdk_osVersion" = "17.2";
    "sdk_variant" = iphonesimulator;
}
--


System Information

macOS Version 14.1 (Build 23B74)
Xcode 15.1 (22502) (Build 15C65)
Timestamp: 2024-01-08T18:24:30+05:00

The build succeeds but the path at which build is saved and the path from which Xcode tries to run on Watch simulator are different.

Actual build path: file:///Users/abdullahshahid_1/Library/Developer/Xcode/DerivedData/SIMOSA-hdnvefmzxxdlwqagsrxeojmlbnje/Build/Products/Debug-watchsimulator/Jazz%20World%20Watch%20App.app

Xcode is looking at path: file:///Users/abdullahshahid_1/Library/Developer/Xcode/DerivedData/SIMOSA-hdnvefmzxxdlwqagsrxeojmlbnje/Build/Products/Debug-watchos/Jazz%20World%20Watch%20App.app

Difference: Build is saved in Debug-watchsimulator folder but Xcode tries to install from Debug-watchos

I think Xcode uses path from TARGET_TEMP_DIR but I don’t know how to make it correct.

Do anyone know how to fix this?

I tried to clean build folder, clear derived data folder, restart Macbook and restart xcode. But couldn’t succeed.
The solutions I found on stack overflow are for React Native but nothing specifically for native iOS.