iOS 10.0.1 and Xcode Error: "Could not find developer disk image" [duplicate]

Question

I updated to iOS 10.0.1 and cannot deploy my project to the device anymore. It was working right before the update. I believe my Xcode is updated (7.3.1).

Rebooting device and computer does not fix the issue. Also interesting, in Xcode Settings -> iOS Deployment target -> iOS 9.3 is the higher version available!

Does anybody have a solution?

Answer 1

Your Xcode(7.3.1) is not updated. update your Xcode here.