Xcode 7.0.1, Bots, and Server 5.0.4: Test target “xx” encountered an error - Timed out waiting 120 seconds for simulator to boot

Expected Result: You check the "Test" checkbox when creating a bot and Xcode server flawlessly executes mt tests like in the WWDC.

Result: Xcode barfs up a bunch of simulator timeout errors and the integration fails.

Test target "xxx" encountered an error (Timed out waiting 120 seconds for simulator to boot, current state is 1. If you believe this error represents a bug, please attach the log file at /Library/Developer/XcodeServer/Integrations/Integration-0e5a387ef456a57b7a2d5a90d004256d/xxxx.log)

Environment:

Xcode 7.0.1
Server 5.0.4
OSX 10.11
Replicated on two different machine with two different projects.
Also, experienced this on OSX 10.10 and Xcode 6

Real Problem: I'm a competent enough programmer with several years of iOS experience. It's hard to believe, although maybe it shouldn't be, that something that looks so simple in WWDC would fail so hard for on two different operating systems and versions of Xcode.

Notes:

I'm running Xcode and Xcode Server from the same machine. I don't have to SSH in.
The integration log file path that Xcode suggests checking is invalid, though I can get the raw build log from the Xcode

Here is a list of other people having similar issues, maybe it will help others: