Update: This also seems to resolve an issue where you could not test lock screen widgets on iOS 16 iPhone simulators.
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mv /Applications/Xcode-beta.app/Contents/Developer/Platforms/iPhoneOS.platform/Library/Developer/CoreSimulator/Profiles/Runtimes/iOS.simruntime/Contents/Resources/RuntimeRoot/Library/Wallpaper /Applications/Xcode-beta.app/Contents/Developer/Platforms/iPhoneOS.platform/Library/Developer/CoreSimulator/Profiles/Runtimes/iOS.simruntime/Contents/Resources/RuntimeRoot/Library/Wallpaper-original && cp -r /Library/Developer/CoreSimulator/Profiles/Runtimes/iOS\ 15.5.simruntime/Contents/Resources/RuntimeRoot/Library/Wallpaper /Applications/Xcode-beta.app/Contents/Developer/Platforms/iPhoneOS.platform/Library/Developer/CoreSimulator/Profiles/Runtimes/iOS.simruntime/Contents/Resources/RuntimeRoot/Library
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