My XCode installation has something wrong with it and I have not been able to fix it. Anytime I run any Watch App in the simulator, the Phone and the watch simulator will open, but when the Watch App runs, my Mac crashes and reboots. I am running XCode 8.2.1 on OSX Sierra 10.12.3 (16D32). The error below seems to indicate it may be grabbing a version of a library that is not suitable for the watch I am trying to run the app with. Below are the things I have tried so far as well as the warning message I am seeing.
Complete re-install of 8.2.1 (removed all cached files and simulators as well)
Installed 8.3.5 BETA
Rebooted Machine
dyld: warning: could not load inserted library '/usr/local/lib/dgagent/libpreload.dylib' because no suitable image found. Did find: /usr/local/lib/dgagent/libpreload.dylib: mach-o, but not built for watchOS simulator
NOTE: the warning message is only present in XCode 8.3.5 BETA, not in 2.1, but running any Watch App will crash my machine with either version of XCode.