Integrating binary framework with cpp files as swift package, library not detected in target in Xcode 14.1

I am trying to integrate SQLCipher as Local Swift Package in my sample app. It is a binary framework so the local package contains libsqlcipher.xcframework with symlinks in include folder.

I adopted solution proposed here in order to convert it to Local Swift Package.

Ideally once the local package is added in the project, we need to add the respective library to the target under 'Frameworks, Libraries, and Embedded Content' section.

Now for some reasons in my case the library is getting detected in the search field when I try to add it in Xcode 13 under 'Frameworks, Libraries, and Embedded Content' for the target but it is not appearing when searched in Xcode 14.1, 14.2 when I try to add it in the same section. The local package is already added to the project file, the problem is with adding it to the target.

I do not see this problem with local packages with Swift, Objective-c files, so I was wondering can it be related to the XCFramework with c / cpp files? Or is this something which got removed from latest Xcode versions?