Cocoapods 1.1.1 target overrides the `ALWAYS_EMBED_SWIFT_STANDARD_LIBRARIES`

I was able to fix this problem by doing the following:

1. Go into Build Settings
2. At the top select All and Combined
3. Under Build Options you should see Always Embed Swift Standard Libraries and it is bold.
4. Click on it and click delete. It should now be unbolded.
5. Pod install and the error/errors should go away!

It wont let me post an image because i don't have enough reputation, so here is a detailed screen shot link!

https://cloud.githubusercontent.com/assets/17066507/21532583/93df897e-cd1f-11e6-9f17-d25cb81a2a53.png