Okay. I did some extra research. IF I am correct, the problem is the version used for Xcode Command Line Tools requires a newer iOS version to build the app, right?
Out of curiosity, what is the OS specified in your “Minimum Deployments” section on your target’s “General” settings? Have you tried setting this to iOS 18.3? I’m not sure that will get around your current issue, but it’s something to check:
FWIW, I would advise just downloading the latest simulators. If you are low on storage on your computer, you can free up space by deleting unneeded simulators by going to “Settings” » “Components”.
And the following is useful for a general cleanup, as advised by item 7 on Paul Hudson’s Xcode Tips and Tricks:
$ xcrun simctl delete unavailable
This doesn’t answer your iOS 18.3 vs 18.5 question, but there is a general inclination to make sure that App Store submissions always be on the then-current base SDK. E.g., as of April 2025, the minimum requirement is iOS 18: