Cannot use .binaryTarget inside local Swift Package

We're building an SDK, shipped as binary.

Context:
To test a pre-release of the SDK, we import it into a client project located in another repo. Since the SDK isn't released yet, we want to integrate it into the client project as a local swift package.

Steps:

  1. We created a package with the following contents of Package.swift:
// swift-tools-version:5.3

import PackageDescription

let package = Package(
    name: "our-sdk-package",
    platforms: [
      .iOS(.v11)
    ],
    products: [
        .library(
          name: "OurSDK",
          targets: ["OurSDK"]),
    ],
    targets: [
      .binaryTarget(name: "OurSDK",
                    url: "https://place.where/sdk/resides/OurSDK.zip",
                    checksum: "17bd37319985946f596baffb2ca778f4a3b573a39391cae5a874a2f11bc558a6")
//        .binaryTarget(name: "OurSDK", path: "OurSDK.xcframework")
    ]
)
  1. As you can see we tried with 2 versions, both using a url where our CI uploads the SDK (this is the ideal approach for us), or, copying the xcxframework in the same folder as the Package.swift file.
  2. We dragged the swift package into the client Xcode project. SPM downloaded the binary ok (we could see that in the Xcode logs).

Problem:
When we try to add the xcframework as a dependency in the Xcode Target Settings, under Frameworks, Libraries etc, by tapping on the + sign, the xcframework (and the package) doesn't appear in that dialog.

Are we doing something wrong or is this scenario not supported?