I just downloaded the iOS 17 runtime, but after copying it into the destination, this popup opens and the Xcode could not use the simulator as expected:

Downloaded from the Apple Developer site
How can I fix this?
Try this:
sudo killall -9 com.apple.CoreSimulator.CoreSimulatorService
It is possible to call simctl on the downloaded .dmg to add the simulator runtime manually. That is a safer workflow that also performs code signing verification. The command would be:
xcrun simctl runtime add <pathTo/platform_simulator_runtime.dmg>
Manually copying the .simruntime into the intended location for installation is an unsupported workflow.
To learn more, take a look at https://developer.apple.com/documentation/xcode/installing-additional-simulator-runtimes
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