Failing to get debug app check token for iOS

I'm closely following app check documentation in order to use debug token, however instead of seeing it logged out in the console I see following error (when running in debug simulator from xcode)

EDIT: Everything works as expected in testflight / real device build

EDIT 2: Created related github issue

[Firebase/AppCheck][I-FAA004002] Failed to exchange debug token to app check token: Error Domain=com.firebase.appCheck Code=0 "The server responded with an error: 
 - URL: https://firebaseappcheck.googleapis.com/v1beta/projects/[my-project-id]/apps/1:[sensitive-data]:ios:[sensitive-data]:exchangeDebugToken 
 - HTTP status code: 403 
 - Response body: {
  "error": {
    "code": 403,
    "message": "App attestation failed.",
    "status": "PERMISSION_DENIED"
  }
}

Thus far I've implemented following steps, but had no luck

1. Enabled both attestation providers for my ios project (App Attest got enabled automatically when I added my team id)

2. Added FIRAppCheckDebugProviderFactory in my code i.e.

  #if DEBUG
    FIRAppCheckDebugProviderFactory *providerFactory = [[FIRAppCheckDebugProviderFactory alloc] init];
    [FIRAppCheck setAppCheckProviderFactory:providerFactory];
  #endif
  
  [FIRApp configure];

3. Added -FIRDebugEnabled to my debug run launch arguments in schema

4. Added AppCheck capability to my target and set .entitlements App Attest environment to production