Apple start using shared cache and that might be part of the issue. I have tried to set LSMinimumVersion to different versions, reinstall SDK, restart Mac and few other things - NOTHING yet works. I do not know how to fix it yet, what I do know:

If I run LS to see the file it is not there

ls -l /usr/lib/swift/libswiftCloudKit.dylib              
ls: /usr/lib/swift/libswiftCloudKit.dylib: No such file or directory

However:

dyld_info -platform /usr/lib/swift/libswiftCloudKit.dylib
/usr/lib/swift/libswiftCloudKit.dylib [arm64e]:
    -platform:
        platform     minOS      sdk
 zippered(macOS/Catalyst)     15.1      15.1  

Locally my app runs just fine. It is iPhone app but works on Mac with M processor. iCloud also works fine. I wonder if that something Apple needs to fix in the store. While it runs on Mac (see pic), I am still getting emails from Apple about the issue. Sad thing is that it blocks app from being available on Mac via TestFlight and QA engineers cannot test it on Mac. iPhone\iPad are not affected by this.