M3 MBP running Sequoia 15.4.1 and Xcode 16.4 Mac is (old school) AD bound Mac is managed by Intune, and is set to allow apps to be run from anywhere.
When we try to build and run anything in Xcode, we get the error in the title.
Pertinent log entries:
mcxalr{94} ** Denying execute for uid=1474851099 path=/Users/<myusername>/Library/Developer/Xcode/DerivedData/mactest2-gevqwurjuobygdaiwboubirauoxv/Build/Products/Debug/mactest2.app/Contents/MacOS/mactest2
If we run it from an AD account that is set up as a local admin, then we get the OS dialog saying:
You don't have permissions to use the application "mactest2."
For more information, contact the person who set up your account.
If that user logs out, and we log in with a "true" local admin account (UID 501), then we get the same results, BUT the OS dialog gives us the option to grant access to the app. (for whatever reason, the auth dialog seems to be created by ScreenTime.)
Signing is set up correctly, but we're not trying to distribute anything, just literally trying to run the generic "hello world" default macOS app project.