XCode error "Could not launch. LLDB provided no error String on Apple Silicon

Question

I'm getting this error consistently in Xcode 12.2 / 12.4 in Apple Silicon. The same app works fine while I run on Xcode 12.0.1 on Intel based Mac. "Could not launch. LLDB provided no error string." [1]: https://i.stack.imgur.com/xvQQh.png

I tried below option and none of them work

1. Reinstall XCode. Tried both 12.2 and 12.4
2. Adding r_path to the LLDB as described here https://github.com/tensorflow/swift/issues/569
3. Restarting machine. App works only first time after restart. Then again same above error.