I was running my app this morning and now all of a sudden I am getting the following error when I try to run on the iPhone 5.1 simulator.
Cannot run on the selected
I believe this may be a current unlisted bug with Xcode 4.4+. I have/had the very same issue with my project. I deleted all versions of Xcode and restarted with 4.4, opened my project and had the error again.
I then started a new project with a template with a different name. Did not have the issue.
I then renamed my old project, started a new empty project with the same name and built/ran and got the error again. This new project was nothing more than a view controller that didn't do anything. I should have gotten a blank screen but got the same error you did.
Frustrated I shut down for the day and re-ran the old project and it worked. I had not changed anything. Currently I have the error again and neither rebooting or restarting Xcode fixes it.
So in summary, a project can have absolutely no changes made, sometimes it builds and runs fine, sometimes you get this error. For the record I did not get this error running Xcode 4.3.
My issue did not show up until I upgraded to Mountain Lion and Xcode 4.4 which happened to be on the same day. Now I can not get back to a 100 percent workable configuration.