I am unable to install a watchOS 2 WatchKit app due to an application-identifier entitlement. This happened after turning on App Groups in the Capabilities tab.
Full
TLDR - delete the app from the device and run again.
In my case :
1. I compiled and run the app on the iPhone device.
2. I open in the setting the Capabilities and turn on the iCloud
3. Then I try to run the app again, boom, error : "App installation failed
This application's application-identifier entitlement does not match that of the installed application. These values must match for an upgrade to be allowed.
4.Then I deleted to app from the iPhone (after I read the answers here)
5.Everything works O.K