I have been trying unsuccessfully to profile my device (via Instruments) using the latest version of Xcode 7.0.1 (7A1001 released 9/28), as well as the previous version of X
This issue still occurred with XCode 10.3 and iOS 12.4.2
I restarted the device only, and it worked.
TL;DR - Perform a complete reboot of your device; restart Xcode & instruments; select "Open Xcode" if prompted to enable the device for development.
Update 3/31/2016: I haven't encountered any issues with the latest version(s) of Xcode (7.2.x, 7.3), so it seems that the stability here has been improved.
I believe I may have finally gotten this to work properly. Detailed steps:
As a side note, I was also again able to delete installed apps from the Devices window (I realized that this was not possible to do previously).
I'm unsure how my device ended up in this state however I will be on the lookout to see if this continues to occur.
Please note that this was done using Xcode 7.0.1.
Update: My device seems to lapse back into not being able to be used for profiling some time after performing these steps - I've had to reboot my device again in order for it to be available for profiling. Not sure what is triggering this behavior but I will file a Radar for this.
Close instruments -> reset your device by long pressing home and power button -> restart instruments. Works for Xcode 7.3.
According to Apple staff on the developer forums the behaviour of this issue is greatly improved in the Xcode 7.3 betas, so one easy solution is to try upgrading Xcode. I've upgraded and it seems to be behaving so far.