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
Accepting the pending agreements from the developer website and iTunes Connect website and reopening the project in X-Code solved the situation for me.
I found that I had accidentally changed the provisioning profile to have a wildcard in it.
Ie., it went from com.companyname.appnickname to com.companyname.*
I made a new provisioning profile with the full name correctly named, downloaded it, set the Target->build settings->provisioning profile to that new profile, restarted xcode, got a bizarre error from xcode (it seemed to confuse my various app developer logins), restarted xcode again, and it worked!
I didn't want to delete the existing app, because I was trying to test what happens when a user upgraded their app to a newer version, so I had installed the app store version and then run my xcode with the newer version (which acts like 'upgrading' the app without removing any user data).
I solved this without deleting the app
With the project open in xcode. Project -> Build Settings -> Code Signing -> Provisioning Profiles (drop down) It is probably set to automatic and is choosing the wrong profile. Open the drop down and choose the correct one, then re-run the app.
I had the same error and I solved it by changing Bundle Identifier to something new. After that it build project with no problem.
My steps:
I had this problem with an iPhone app, and fixed it using the following steps.
After I did that, my app rebuilt and launched just fine. Since your app is a watchOS app, I'm not sure that you'll have the same result, but it's worth a try.
I encountered this issue because I built to the phone with my code signing turned off from another machine, so you need to uninstall the app from the phone before installing/building to the phone with code signing on.