Silly bug!
Open XCode, go to Xcode → Settings → Locations and select Command Line Tools version even tho it is already selected and has only one option. It asked be for touch-id and after Unreal worked.
That’s works for me, thank you so much!
It worked for me on a Macbook with M3 chip and UE 5.5. Thanks for the advice.
Amazing, youre a life saver. This worked for me when I tried everything else people suggested like different versions of xcode, setting the location in the UI, using different versions of Unreal..
How did you know to do this? Just curious.