I am getting a AlertView popup error on iOS every time I try to install a watchOS 2 app in Xcode 7 beta 4:
Cannot Install Watch App<
Me too faced same issue.
In my case the issue was because of the location access alert. Mine app was related to weather app.I was accessing user location,so whenever app is getting launched,iphone simulator have an alert ,asking the user to allow/disallow picking of his location.
After giving location permission watch app simulator launched successfully.
Hope this might help someone.