Just updated to Xcode 7.1 and getting this error. Was able to upload fine using 7.0.1
From the rest of the answers it seems that a lot of different things "resolve" this issue. Here are the particulars of what solved it for me:
The iPad had to be plugged in.
The iPad had to be signed in (i.e. not locked).
After I satisfied those two conditions, it validates and uploads reliably. If either one isn't done, I am not able to validate or upload to iTunesConnect and I get the Cannot verify client (3000)
error.