Using Xcode 9.
I think you are selected Ad Hoc option to get .ipa file. Select App Store option to get the .ipa file, then use Application loader to submit .ipa file.
In my case i'm getting email like this...
Missing beta entitlement - Your app does not include the beta-reports-active entitlement. If you intend to distribute this build via TestFlight for beta testing, please re-build this app with an App Store Distribution provisioning profile. Do not use ad-hoc profiles.
After you’ve corrected the issues, you can use Xcode or Application Loader to upload a new binary to iTunes Connect.
Regards,
The App Store team
Then i changed the option from Ad Hoc to App Store... enter image description here