I use Xcode 8.1 without problems (both for the device and for the simulator). One of my test devices is 10.3 beta-3, so I need to run Xcode 8.3 beta. It does not work with the following error:
/Users/phil/dev/kokomot/Kokomot/Kokomot.xcdatamodeld/Kokomot.xcdatamodel: Cannot find cdtool . "/var/folders/9x/wrdwltwx6jg6f7tzfrjq6d5c0000gn/T/AppTranslocation/4337E592-3A26-47A2-BFA2-9A5B067EC6CB/d/Xcode-8.3-beta.app/Contents/Developer/Pveloper/Plsample Agents / cdtool ': Unable to find simulator run time for platform>.
Note that the "cdtool" error is misleading; cdtool exists, but apparently will not work due to a simulator runtime error.
UPDATE: this work in Xcode 8.1 by referencing the 10.3 folder in the beta version of Xcode: https://gist.github.com/steipete/d9b44d8e9f341e81414e86d7ff8fb62d
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