Can't package in unreal 5.3.2 on mac - Could not find a part of the path '.../Packaged/Mac/Engine/Binaries/Mac/'

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I had this issue as well on 5.3.2 on Mac. I was able to fix it by enabling ModernXCode:

Either in the DefaultEngine.ini, or enabling it through the ProjectSettings under “XCode Projects”

[/Script/MacTargetPlatform.XcodeProjectSettings]
bUseModernXcode=True
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