Just wanted to come back here in case my solution helps others.
As I mentioned, the project in question is very old (prob 10 years at this point). I have updated it over the years, but....yeah.
To start I created a brand new Xcode project with Xcode 16.3. Then I opened my old project and the new project, showing the build settings in 'Levels' view, so I could see each setting and where it is modified. I meticulously went thru each setting comparing my old project to the new project and changed my old project to match the new project (where it made sense, for example, I can't use script sandboxing).
After going thru this process. My coverage works!!!!!
I am not 100% exactly which setting it was, but I noticed that several of setting differences were quite suspicious. Stuff like the C/C++ language dialects being different? The 'Active Compilation Conditions', 'Compilation Mode' and 'Optimization Level'....all were different.
As I said, not sure which setting it was exactly. But to anyone having issues. I recommend this as a process. Just got to buckle down and go setting by setting till you find the magic one!
-pj