The solution for me was to force Xcode to download a "Universal" version of the iOS 26 simulator rather than the default "Apple Silicon". Here are the steps:
2. Force Xcode to download the "Universal" emulator by typing the following on Terminal and pressing "Enter": xcodebuild -downloadPlatform iOS -architectureVariant universal
3. Go back to Xcode, and you should now see the universal iOS 26 emulator component along with Rosetta emulators.