I have updated my iOS device to iOS 10, now Xcode says \"Could not find Developer Disk Image\" while trying to run on iPhone using Xcode 7.3.1 How can I fix the problem and make
You may try downloading a Developer Disk Image for the required iOS version, as of your mobile device; If you only want a quick and simple solution..
You need to goto:
/Applications/Xcode.app/Contents/Developer/Platforms/iPhoneOS.platform/DeviceSupport/
and paste the Developer Disk Image you just manually downloaded.
If you want to develop with Xcode 7 on your iOS10 device :
ln -s /Applications/Xcode.app/Contents/Developer/Platforms/iPhoneOS.platform/DeviceSupport/10.0\ (14A345)/ /Applications/Xcode7.app/Contents/Developer/Platforms/iPhoneOS.platform/DeviceSupport/10.0
Note : This works for Xcode 9 and above
Source
UPDATE 2018:
If you want to use Xcode 9 with iOS 12:
ln -s /Applications/Xcode-beta.app/Contents/Developer/Platforms/iPhoneOS.platform/DeviceSupport/12.0\ (16A5354b)/ /Applications/Xcode.app/Contents/Developer/Platforms/iPhoneOS.platform/DeviceSupport/12.0
As holex says installing Xcode 8 solves the problem