I am creating an app for iOS which contains an Apple Watch app embedded.

I have turned ON Build Settings > Enable On Demand Resources and marked some assets inside a .xcassets file as on-demand.

This is the error I see.

/* com.apple.actool.errors */
: error: Cannot enable on demand resources for the platform "watchOS". Consider disabling the ENABLE_ON_DEMAND_RESOURCES build setting.
/* com.apple.actool.compilation-results */
/Users/myMac/Library/Developer/Xcode/DerivedData/cuaaa-bfkiwkbyypwohfahhwdaqhzirchn/Build/Intermediates.noindex/cuaaa.build/Debug-watchos/cuaaa Watch App.build/assetcatalog_generated_info.plist
/Users/myMac/Library/Developer/Xcode/DerivedData/cuaaa-bfkiwkbyypwohfahhwdaqhzirchn/Build/Products/Debug-watchos/OnDemandResources/.watchkitapp.cucarobga-747198866748abb7711ab70510b9c29e.assetpack/Assets.car
/Users/myMac/Library/Developer/Xcode/DerivedData/cuaaa-bfkiwkbyypwohfahhwdaqhzirchn/Build/Products/Debug-watchos/cuaaa Watch App.app/Assets.car

Command CompileAssetCatalog failed with a nonzero exit code

The problem is that in theory, On-Demand Resources is something compatible with watchOS.

The error you see is from some dummy project I have created of a watch-only app I have created to see if the issue was of my project. It is not.

Any ideas?