Possible bug for Conditional Target Dependencies

Hello all,

I don't know if I'm doing something wrong or if it's a bug regarding SE-0273

I have a project that uses the MSAL framework which is iOS only. I created a wrapper that offers the full functionality on iOS and a limited subset on WatchOS, however I can't get the project building for the Watch because MSAL doesn't build for it. I tried to conditionally depend on MSAL only on iOS, but I still get errors on build saying "While building for watchOS, no library for this platform was found in '[...redacted...]/Library/Developer/Xcode/DerivedData/MSALDemoWatch-eqhjfwguhhjedjaspdtxztlihyre/SourcePackages/artifacts/microsoft-authentication-library-for-objc/MSAL.xcframework'."

I tried every swift-tools-version from 5.3 to 5.6 and I get this in all of them. Am I doing something wrong?

Here's my Package.swift file.

// swift-tools-version: 5.5

import PackageDescription

let package = Package(
    name: "MSALDemoWatch",
    platforms: [.iOS(.v15), .watchOS(.v8)],
    products: [
        .library(
            name: "MSALDemoWatch",
            targets: ["MSALDemoWatch"]
        ),
    ],
    dependencies: [
        .package(
            url: "https://github.com/AzureAD/microsoft-authentication-library-for-objc.git",
            from: "1.1.26"
        ),
    ],
    targets: [
        .target(
            name: "MSALDemoWatch",
            dependencies: [
                .product(name: "MSAL", package: "microsoft-authentication-library-for-objc", condition: .when(platforms: [.iOS])),
            ]
        ),
    ]
)

It seems like it's a known bug for binary dependencies: [SR-15196] Binary target required for compilation despite being a conditional dependency - Swift