You do not need to specifically specify i386 in the configuration of the architecture. Ideally, you should just leave ARCHS and VALID_ARCHS as default values, and everything should just work. You will only see the listed architecture of the hands, but the right thing happens behind the scenes when creating for the sim.
When creating the simulator, your project will be built for i386, x86_64, or both (depending on the deployment purpose and the ARCHS and ONLY_ACTIVE_ARCH settings). In the simulator, 32-bit devices are allowed to run i386 code, and 64-bit devices can run both i386 and x86_64b code (like real devices, but using Intel instead of a hand).
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