I'm posting the question and answer here because it took me 4+ hours to get to the bottom of this.
PROBLEM: You run pod install and get the following error
The 'XXX [Debug]' target overrides the 'LIBRARY_SEARCH_PATHS' build setting defined in 'Pods/Target Support Files/Pods-XXX/Pods-XXX.debug.xcconfig'.
This can lead to problems with the CocoaPods installation
- Use the '$(inherited)' flag, or
- Remove the build settings from the target.
- You try deleting all of the rows in Library Search Paths and still get the error.
- You try adding
$(inherited)as the first item. Cocoapods stops complaining, but you no longer see all of the search paths that were originally imported.