Found a workaround!
Problem seems to stem from using modern Xcode.
To change this:
- On your Windows machine, go to your engine install location and find BaseEngine.ini (e.g. “Program Files\Epic Games\UE_5.4\Engine\Config\BaseEngine.ini”).
- Open the file, find “[/Script/MacTargetPlatform.XcodeProjectSettings]”, and underneath change “bUseModernXcode=true” to “bUseModernXcode=false”.
- Save BaseEngine.ini
- Open your project, package for IOS
Of note, this was the same solution for some other IOS problems during 5.3, see forum post here