I keep getting the error:
“Xcode cannot find the software image to install this version” on deployment?
I upgaded my iPhone to version 6.1.3 and also recently up
The message "xcode cannot find the software image to install this version" seen in the organiser window... This is just a notification rather than a problematic error.
Source: https://stackoverflow.com/a/8537034/736384
So, if it is a update problem, Rajan's answer should solve it, if not:
That message has nothing to do with the problem that you can not compile. When you want to compile, didn't Xcode show any message error?
Anyway you could try restarting Xcode (quit iTunes first if it's running).