iOS Build Failed at compile time with issue "failed to find a suitable device for the type SimDeviceType"

It seems like the old simulator process remained open in the background during an XCode update.

Simply running

sudo killall -9 com.apple.CoreSimulator.CoreSimulatorService

in terminal may solve the problem.
There shouldn't be a need for cleaning the project and/or build folder.

If you quit Xcode and still get the same error, then try clean (command + shift + option + k) and select option "Clean" in popup. Repeat this 2 to 3 times. It works in my case.

I was experiencing the same problem. In my case, I had launched the Simulator from a previous version of Xcode prior to building. The problem persisted when I quit the simulator, but restarting Xcode solved it for me.