Xcode Loading Test... Stuck

Since couple of weeks ago (probably after I've updated my macbook to Sonoma 14.3.1) my Xcode cannot load unit test. When opening Test Navigator all I see is: Loading Tests... and it stays forever in that state.

This is completely new project and this is crazy. Only way I can start testing is if I use CMD+U to run all the tests which is my company's project take a lot of time. Also there's no option to click on test-diamond-shaped button to run individual tests. Also tried checking "Test Plans" but I have infinite progress views:

Anyone has any idea how to fix this?

I tried to remove Derived Data, to reinstall Xcode (and different versions), did "git clean -fxd" nothing helped. Also some function like: "Rename", "Edit all in scope" stopped working as well.