Can't create project macOS 10.12.1

I have xCode 8 installed. Fresh download of 4.14

Can run several of the Command Line Tools commands in terminal. Verified that directory is not there. I have /Library/Developer/CommandLineTools, but no Platform folder.

What am I missing?

An error occurred while trying to generate project files.

Running Mono...

Setting up Mono
/Users/Shared/UnrealEngine/4.14/Engine /Users/Shared/UnrealEngine/4.14/Engine/Binaries/Mac
Discovering modules, targets and source code for project...
Compiling with non-standard Xcode (xcode-select): /Library/Developer/CommandLineTools/
Triggered an exception while looking for SDK directory in
System.IO.DirectoryNotFoundException: Directory '/Library/Developer/CommandLineTools/Platforms/MacOSX.platform/Developer/SDKs' not found.
  at System.IO.Directory.ValidateDirectoryListing (System.String path, System.String searchPattern, System.Boolean& stop) [0x00000] in <filename unknown>:0 
  at System.IO.Directory.GetFileSystemEntries (System.String path, System.String searchPattern, FileAttributes mask, FileAttributes attrs) [0x00000] in <filename unknown>:0 
  at System.IO.Directory.GetDirectories (System.String path, System.String searchPattern) [0x00000] in <filename unknown>:0 
  at System.IO.Directory.GetDirectories (System.String path) [0x00000] in <filename unknown>:0 
  at UnrealBuildTool.AppleToolChain.SelectSDK (System.String BaseSDKDir, System.String OSPrefix, System.String& PlatformSDKVersion, Boolean bVerbose) [0x00000] in <filename unknown>:0 
ERROR: Invalid SDK MacOSX.sdk, not found in /Library/Developer/CommandLineTools/Platforms/MacOSX.platform/Developer/SDKs

Probably you had another version of “cli-xcode”. For example, if you try some developer stuff like homebrew or just “xcode-select --install” ,which installs little bit different SDK (more regular for compile command line apps).

Anyway try to install official Xcode first and run this command in terminal after:
sudo xcode-select -r

Let me know if it helps